Adam Bieber Joins Phillips Realty Capital

Bethesda, MD, December 17, 2015 — Phillips Realty Capital today announced that Adam R. Bieber has joined the firm as a Managing Director. Mr. Bieber was previously Vice President at Meridian Capital Group, a national mortgage banking company. Prior to that, he worked for an agency lender and a prominent multifamily developer and operator in Washington, D.C.

“I am excited to join the team at Phillips Realty Capital,” Bieber said. “I look forward to contributing to an already exceptional staff that deeply cares about their clients and is constantly in tune with an ever-evolving real estate market.”

“Adam will be focusing on our core business — engineering debt and equity finance solutions for commercial real estate owners and developers,” said Phillips Realty Capital CEO, C. Stephen Shaw, Jr. “He’s got an old-school work ethic that our clients value, and he understands what it takes to earn their trust.”

Phillips Realty Capital is a leader in Washington, D.C. commercial real estate finance, structuring approximately $1.2 billion in debt and equity transactions each year, and servicing a $2.0 billion loan portfolio on behalf of 24 institutional investors. Established in 1933, Phillips has a proven track record of collaborating with premier property owners, lenders, and investors to structure the most competitive transactions available in the market. With offices in Bethesda, Richmond, and Charlottesville, dedicated teams of experts deliver reliable financial analysis, precise valuations, and deep knowledge of capital markets to engineer the proper capital structure to meet each client’s needs.

http://www.bizjournals.com/washington/potmsearch/detail/submission/5379012/Adam_Bieber?l=&time=&ind=&type=&ro=0

#NextGenCRE – Own to Rent

Forget rent-to-own. Savvy millennials own to rent. In a recent Forbes article, Lucy Mueller summed things up well when she called millennials, “a really weird brand of home buyer.”
While some research indicates that millennials aren’t buying homes as early as previous generations, plenty are putting a mortgage ahead of traditional milestones like marriage. Mueller points out, millennials entering the market early are motivated not by the dream of a white picket fence, but by the desire to move their finances from red to black.With high rent prices in markets like D.C., finding a way to reduce rent or even living rent-free (referred to as “house hacking” on popular real estate blog biggerpockets.com) is not uncommon. My first “hack” was inspired by the need to pay for a three-month backpacking trip throughout Europe. While there’s nothing new about a group of guys renting a house together, my friends and I took it a step further. We convinced our landlord to put up a temporary wall in the dining room (a room no 20-something guy uses) to create an extra bedroom. This allowed us to divide the monthly rent by five rather than four.After one incredible European adventure and three years of living in a makeshift room, I decided to cut out the middleman. I now own a duplex in an up-and-coming area of Petworth, Washington, DC. The property is walkable to the Fort Totten metro (red, green, and yellow lines), convenient to downtown, and on the cusp of development activity moving eastward across the city. Income from my renters pays my mortgage and related expenses plus some, so I am actually making money while living and investing in a neighborhood I believe in.

1) Think long term

Unless you are attempting to ‘fix-and-flip,’ real estate investing is a long-term play. As my Real Estate Finance professor said, “Never sell real estate. Buy, hold, re-fi, die.” Understand the trends of the area, future development plans, who your tenants might be, and choose a location where you want to live for the foreseeable future.

Personally, real estate ownership is as long term as it gets. While I do believe market timing is important, I don’t think it’s more important than time in the market. Real estate values fluctuate, but the longer you hold onto an asset, the more likely it will appreciate, especially in core markets like D.C.

2) It’s still all about location

As city populations grow, roads congest and car related expenses skyrocket, public transportation continues to play a large role in where someone decides to live. This leads me to my top criteria when searching for a home–Is it close to public transit? I wanted my property to be within walking distance of a metro, and not just any metro, a convenient one with multiple lines that feed into Metro Center.

As for my second criteria, I wanted to own property in a transitional area with projected growth. In order to find healthy real estate locations in DC, I looked to the experts, such as JBG, Douglas, and Donatelli. I asked myself these questions: Where are they building or planning to build? What are they building? How will the development impact the area? And, what is their vision? JBG and Cafritz Foundation have made big investments in Fort Totten, and Donatelli plans to. Their developments will shape the area and make it a place where people will clamor to live.
Take it a step further and review the “Comprehensive Plan” for the area. What does your city want that area to become? For Fort Totten, it may take five years, a decade, maybe more, but as I mentioned before, you have to be in it for the long haul.

3) Find the right realtor and team of advisors

When attempting to “house hack”, it is critical to have an investor mindset. The property must work on paper and a trusted team of advisors should verify your math. It’s best to have conservative estimates and justify every number.

Beyond the finances, another critical member of your team should be a realtor that you trust. This person will negotiate on your behalf and help you navigate the waters of buying your first property. I found it invaluable to have a realtor who was also an investor. He offered insight and wisdom about things I hadn’t even considered. All the real estate articles and books I’ve read couldn’t compete with his firsthand knowhow. We visited countless properties, and within seconds, he would turn to me and say, “this is a no-go in my mind for this reason…” He understood my vision and long-term goals, and was honest throughout the entire process.

4) Plan out the renovation, and always consult a contractor

I thought I understood the amount of work I embarked on when I bought my property; I did not. In hindsight, I wish I would have mapped out the renovation timetable better. For the last two months, I’ve spent every morning and evening (before and after work) at the house painting, sanding, meeting with contractors, picking out tile, reviewing samples, etc. I put myself under a tight timeline to finish renovations by September in time for prime rental season. Side note– If you plan on doing a lot of the work yourself, clear it with your significant other and boss beforehand.

When you’re a novice, you’re inefficient by default. There were days when I made several trips to Home Depot because I didn’t buy something that I needed to complete a project. A great rule of thumb from my contractor– “measure twice, cut once.” The same goes for planning your rehab.

5) A good landlord plays it safe

A fellow real estate investor advised, “I am in the business of tenant retention, not acquisition.” Attaining and retaining good tenants is what all good property owners aim to do. Having to remove a delinquent tenant can be timely, costly, and mentally draining.

To market the property, I used Craigslist and HotPads. Within 24 hours of posting, I got emails from multiple interested parties. Once I had a good meeting with a prospective tenant, I had them fill out an application that ran their credit, rental history, and criminal background. Taking the time to go through this process was well worth it. My now current tenants have fantastic credit, and no eviction or criminal history. Even better, they are good people that I enjoy living alongside. Now I’m ready to shift my focus to retaining these great tenants.

In conclusion, my first foray into home ownership worked out better than expected, but the vision for the property is not complete. I have additional plans for the property: building an outdoor patio, adding a rooftop deck… the list goes on! I am so thankful for all the support and guidance I received from my incredible advising team. I am also grateful for my friends and family who helped me paint, refinish cabinets, and provide a few laughs for every hiccup that came my way.

If you want to “house hack”, the only thing stopping you is you. Be bold, take a chance, and have fun with it.

– By Conner Bell, Mortgage Analyst at Phillips Realty Capital

#NextGenCRE is an occasional blog by some of the younger analysts at Phillips Realty Capital, a leader in Washington, D.C. commercial real estate finance. Connor Bell is part of Phillips Realty Capital’s EB5 Capital real estate finance team.

Uline Redevelopment Financing

Bethesda, MD, August 20, 2015 – Phillips Realty Capital appreciated the opportunity to work with Douglas Development Corporation on its Uline redevelopment project along with our joint venture partner, EB5 Capital.

The historic Uline ice arena, famously known for hosting The Beatles’ first concert in North America in 1964, is undergoing an inspired transformation that will feature 174,000 square feet of creative loft office space with rooftop decks and 70,000 square feet of retail, including REI.

The EB-5 financing was structured by Dan Shiff, a principal at Phillips Realty Capital and a managing director of EB5 Capital, along with Jon Mullen, a vice president at Phillips and a director of investments at EB5 Capital. The Phillips/EB5 Capital joint venture leverages the significant real estate and capital markets experience of both teams to find high-quality investment opportunities for immigrant investors with prominent real estate partners.

Washington Business Journal

Douglas Development secures Uline construction financing

GlobeSt.com

Douglas Development Uses EB-5 For Uline Project

REBusinessOnline

http://rebusinessonline.com/douglas-development-secures-93-5m-loan-for-mixed-use-development-in-d-c/

Where To Source Your Best Capital

Bisnow Real Estate, August 19, 2015 – We’ve been hearing so much about the multifamily sector as a delicious attraction for investors, but Phillips Realty Capital (PRC) principal John Sieber tells us not to forget about industrial. John has seen a number of industrial transactions trade during this year alone, which is unusual. Why? John senses that, although industrial may not be as sexy as multifamily, the industrial market is high-quality and offers numbers that give decent returns. John adds that the beauty of his business is that PRC is not wedded to any one property type; he’s in the market daily with hundreds of capital sources. He reminds us that borrowers may need to be schooled in what capital is best for their “babies” (investors may think they have an A asset, but it may be B in a C location). Because of his honest assessments, he calls his customer base loyal, comprising about 70% local and 30% national.

https://www.bisnow.com/archives/newsletter/local-real-estate/washington-dc/5902-8-major-dc-real-estate-firms-led-by-trammell-crow-alums/

Phillips Realty Capital Sets Mid-Year Production Record

Bethesda, MD, July 29, 2015 – Phillips Realty Capital (PRC) announced today that it has closed transactions totaling nearly $650,000,000 in the first half of 2015. That sets a mid-year production record for the boutique commercial real estate investment banking firm based in Bethesda, Maryland.

Among the deals closed recently was a permanent loan for Marymount University to replace the enigmatic “Blue Goose” building at 1000 N. Glebe Road in Arlington, VA. The financing structure allows the University to maintain its primary rights to the asset. The new development will include a nine-story office building, a 15-story residential building, retail space, and a public plaza with a western entrance to the Ballston Metro Station.

“The ‘Blue Goose’ deal is a great example of the role we play in commercial real estate,” said Phillips Realty Capital CEO, C. Stephen Shaw, Jr. “We’re going to do everything it takes to structure the best deal for our client, while also making sure it’s the right fit for the lender. That means working with the property owner to demonstrate the real value of the property, and then exploring the full range of the market to find the right lender and the right terms.”

Other notable 2015 Phillips Realty Capital transactions include:

  • $85,000,000 construction-to-permanent loan for a student residence development in Daytona Beach, Florida;
  • $68,000,000 Permanent financing for a Class A office building in Washington, DC;
  • $51,000,000 permanent loan for a multi-family property in in Cumberland, South Carolina, financed at 90 percent of cost; and
  • $51,000,000 construction/permanent loan for a mixed-use property in Gaithersburg, MD.

Phillips Realty Capital’s Chief Operating and Financial Officer, Joseph C. Tilley, noted that the 32 transactions closed before July 1, 2015 were spread across 27 different capital sources.

“The diversity of capital source providers we’ve worked with over the last six months demonstrates our ability to cover the market for our clients,” said Tilley. “That level of service and dedication is why we have been successful in beating our goal of closing around $100-million a month.”

About Phillips Realty Capital

Phillips Realty Capital is a leader in Washington, D.C. commercial real estate finance, structuring approximately $1.2 billion in debt and equity transactions a year and servicing a $2.0 billion loan portfolio on behalf of 24 institutional investors. Established in 1933, Phillips has a proven track record of collaborating with premier property owners, lenders, and investors to structure the most competitive transactions available in the market. With offices in Bethesda, Richmond and Charlottesville, dedicated teams of experts deliver reliable financial analysis, precise valuations, and deep knowledge of capital markets to engineer the proper mix of capital to meet each client’s needs.

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Phillips Realty Capital CFO to Serve in Dual Role as CFO at EB5 Capital

Bethesda, MD, July 17, 2015 — Phillips Realty Capital today announced that Chief Operating and Financial Officer, Joe Tilley has taken on a new companion role as the CFO of EB5 Capital, Phillips Realty Capital’s joint venture partner and leader in the EB-5 immigrant investor industry.

The Phillips Realty Capital/EB5 Capital joint venture brings together real estate finance and EB-5 investing expertise to match qualified immigrant investors with prominent real estate development partners to finance high-quality mixed-use, hospitality, and residential development projects. The Phillips Realty Capital/EB5 Capital team offers the ability to provide non-recourse construction financing that can take the form of a senior loan, mezzanine loan, preferred equity or joint venture equity.

“Many of our clients see EB-5 financing as an attractive source of lower-cost capital to add to their capital stack,” said Phillips Realty Capital CEO, C. Stephen Shaw, Jr. “The combined real estate, finance, and EB-5 program expertise of the Phillips/EB5 Capital team is unmatched in the industry. Joe’s leadership as CFO at both organizations strengthens the joint venture and our shared commitment to best-in-class business practices.”

“We welcome Joe’s passion for precision,” said Angelique Brunner, Founder & President of EB5 Capital. “Joe stepping into the CFO role at EB5 Capital further enables us to provide investors and developers an unparalleled level of professionalism and institutional practices. It also enables me and the rest of our team to focus on raising capital and identifying promising economic development opportunities.”

Tilley remains responsible for overseeing all aspects of Phillips Realty Capital’s operations and all financial reporting and accounting functions. In addition, he will continue to oversee the management of the firm’s $2 billion loan servicing portfolio. As CFO of EB5 Capital, Tilley is responsible for the oversight of all of the finances of EB5 Capital and its investments. This includes project and tax reporting to foreign investors, as well as establishing controls maintained for the safeguarding of investments and all EB5 Capital assets.

“We’ve seen tremendous growth at both companies this past year,” said Tilley. “There is really great synergy between the two firms. I am excited to provide financial and strategic leadership for both Phillips and EB5 Capital.”

To accommodate Tilley’s dual roles, Phillips Realty Capital appointed Nancy Oliver to serve as its Accounting Manager. Ms. Oliver spent the previous three years with Phillips Realty Management where she oversaw all accounting functions related to the company’s portfolio of managed properties. Prior to Phillips, she worked as an Account Manager for Human Vision, LLC, a real estate development company. Additionally, EB5 Capital appointed Caroline Andersen as Director of Finance and Accounting, working under Tilley’s leadership. After beginning her accounting career at Baker Tilly Virchow Krause, LLP, Ms. Andersen served as the Assistant Controller for the Washington Redskins.

About Phillips Realty Capital

Phillips Realty Capital is a leader in Washington, D.C. commercial real estate finance, structuring approximately $1.2 billion in debt and equity transactions each year, and servicing a $2.0 billion loan portfolio on behalf of 24 institutional investors. Established in 1933, Phillips has a proven track record of collaborating with premier property owners, lenders, and investors to structure the most competitive transactions available in the market. With offices in Bethesda, Richmond, and Charlottesville, dedicated teams of experts deliver reliable financial analysis, precise valuations, and deep knowledge of capital markets to engineer the proper capital structure to meet each client’s needs.

About the EB-5 Visa Program

Administered by the United States Citizenship and Immigration Services (USCIS), an agency of the Department of Homeland Security, the EB-5 Immigrant Investor Program offers foreign nationals and their families the opportunity to become permanent residents of the United States in exchange for investing in a business that creates jobs for American workers. The program’s name, “EB-5,” comes from the visa category for which immigrant investors apply – the Employment-Based 5th Visa.

About EB5 Capital, Phillips Realty Capital’s Joint Venture Partner

EB5 Capital partners with foreign investor clients to help them gain permanent residency in the United States by matching them with promising investment opportunities and structuring projects to fulfill the mission of the EB-5 Program. EB5 Capital’s President, Ms. Angelique Brunner, first began raising EB-5 funds in 2007, and her first Regional Center was among the first approved by the United States Citizenship and Immigration Services (USCIS) in April 2008. EB5 Capital has raised capital for 13 transactions from more than 400 immigrant investors in nearly 50 countries, with a 100% approval rate for all past immigrant investor visa petitions.

In 2013, the principals of Phillips Realty Capital formed a joint venture with EB5 Capital, leveraging the significant real estate and capital markets experience of both teams to find high-quality investment opportunities for immigrant investors with prominent real estate partners. Several principals and investment analysts at Phillips have dual roles at EB5 Capital. EB5 Capital operates USCIS-authorized EB-5 Regional Centers a around the country, most notably in Washington, D.C., California, and New York, offering investors a level of choice, safety and flexibility unmatched in the industry. Read more at www.eb5capital.com.

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Washington Post

http://www.washingtonpost.com/business/capitalbusiness/washington-area-appointments-and-promotions-for-july-27/2015/07/24/9530d6b4-309c-11e5-8f36-18d1d501920d_story.html

Washington Business Journal

http://www.bizjournals.com/washington/potmsearch/detail/submission/4878502/Joe_Tilley

Washington Business Journal-http://www.bizjournals.com/washington/potmsearch/detail/submission/4878462/Nancy_Oliver

#NextGenCRE – Hotel Millenial

#NextGenCRE, June 24, 2015 – At a recent all-hands meeting of Phillips Realty Capital, talk turned to trends in the hotel industry aimed at attracting Millennials.Fellow Millennial and Mortgage Analyst, Peter Loukas, gave a quick primer on the two leading brands with openings anticipated in D.C.– Moxy and Canopy.

Marriott’s new Moxy brand offers a hip new twist on economy travel. With smaller, more affordable rooms than traditional business-hotels, Moxy features vibrant community gathering spaces with plenty of tech amenities and 24/7 food service, giving young professionals more of what they want and less of what they don’t need.

Hilton’s Canopy brand also caters to Millennials who crave less fuss and more personality when they travel. Canopy promises a more authentic experience with lobbies, common spaces and dining that reflect each property’s local neighborhood. Canopy also aims to reduce some of the hassle of living out of a suitcase, letting guests skip the desk and check-in using their cell phones, and removing doors from closets to accommodate rolling-luggage.

Phillips Principal, Dan Shiff, added that similar trends are also playing out in new multi-family offerings. Lifestyle amenities like rooftop pools are featured centerpieces, necessities for any new property rather than add-ons. Gone are the days of elaborate and stately entryways. Instead, builders are offering coffee-house-style community gathering places, dog parks, and in-house yoga and cycling studios.

Peter noted that while it is exciting to see apartments and hotels built to suit our generation’s lifestyle, he cautions that research related to hotel market demand misses the mark if it doesn’t factor in the continued growth of services like Airbnb. Millennials have embraced the tech-enabled sharing economy and won’t pay for big brand overhead when what they really want (cool digs in a great location) is literally available at their fingertips.

— By Laurie Peltola, Business Development Manager at Phillips Realty Capital

#NextGenCRE is an occasional blog by some of the younger analysts at Phillips Realty Capital.

This blog was originally published on Linked-in Pulse:

https://www.linkedin.com/pulse/nextgencre-hotel-millenial-laurie-peltola?trk=prof-post

Phillips Realty Capital Structured $85 Million for Quantum Student Residence Project

Bethesda, MD, June 1, 2015 — Phillips Realty Capital today announced that it closed on an $85 million construction loan for Quantum Realty Capital, LLC’s (Quantum) student residence development on the campus of Bethune-Cookman University (BCU) in Daytona Beach, Florida. The Silver Spring, Maryland-based developer is building student residence facilities that will be leased back to BCU.

Phillips Realty Capital Managing Director Brian Boland structured the financing with a lender that specializes in credit tenant lease financing. The construction-to-permanent loan has a 100 percent loan-to-cost ratio with a 36-year term.

“Phillips leveraged their commercial real estate expertise and relationships with key capital sources to secure the financing we needed to proceed with construction without missing a beat,” said Quantum Managing Partner, DL Dailey. “The Phillips team worked seamlessly with us on the finance component so we could remain focused on development and construction management.”

Quantum’s 1,206-bed residence hall project includes four student-housing buildings at two different locations on the BCU campus. The completed residence halls’ design compliments the historic fabric of the BCU campus and includes high efficiency energy systems and best-of-class student amenities. Each student housing building is comprised of exterior courtyard common areas, student living and study rooms, and student and staff offices. Interior common areas include multipurpose rooms, fitness, lounge, and laundry facilities. Construction is underway, with Phase I expected to be complete in January 2016 and completion of Phase II expected in June 2016.

About Phillips Realty Capital

Phillips Realty Capital is a leader in Washington, D.C. commercial real estate finance, structuring approximately $1.2 billion in debt and equity transactions a year and servicing a $2.0 billion loan portfolio on behalf of 24 institutional investors. Established in 1933, Phillips has a proven track record of collaborating with premier property owners, lenders, and investors to structure the most competitive transactions available in the market. With offices in Bethesda, Richmond and Charlottesville, dedicated teams of experts deliver reliable financial analysis, precise valuations, and deep knowledge of capital markets to engineer the proper mix of capital to meet each client’s needs.

About Quantum Realty Capital

Quantum Realty Capital, LLC is a developer of credit tenant lease projects for the tax exempt and corporate markets, focusing on the facility development needs of state and municipal governments, public and private educational institutions and corporations. With an understanding of the unique development and financial requirements of each client, Quantum custom tailors each project to achieve the best possible development, financial and long-term use objectives under a mutually-beneficial partnership model.

Mid-Atlantic Real Estate Journal

http://www.marejournal.com/#!Phillips-Realty-Capital-closes-85m-loan-for-student-residence-project/cuhk/55ae4e970cf286eab02837d6

 

Orlando Business Journal

http://www.bizjournals.com/orlando/morning_call/2015/06/7-things-to-know-today-plus-nelson-asks-forprobe.html

REBusinessOnline

http://rebusinessonline.com/phillips-realty-closes-85m-construction-loan-for-student-housing-project-in-daytona-beach/

Student Housing Business

http://www.studenthousingbusiness.com/latest-news/phillips-realty-closes-85-million-for-florida-student-housing-project

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Renderings and photos available

Phillips #1 in “Best Places to Work” Ranking

Bethesda, MD, May 15, 2015 – Phillips Realty Capital topped Washington Business Journal’s “Best Places to Work 2015” ranking of medium-sized companies in the greater Washington, D.C. area. The ranking determined by Quantum Workplace was announced at a May 14 reception at Warner Theater celebrating 85 finalists in four size categories.

“We’re thrilled to be front and center of this award,” said Phillips Realty Capital CEO, C. Stephen Shaw, Jr. “We’ve worked hard over the years to build a firm with talented, focused, hardworking people who have fun working together. We’ve always thought we were a great place to work, but this is a wonderful validation that everyone on our team knows they are valued and shares in our success.”

Washington Business Journal teams with Quantum Workplace to conduct an employee engagement survey as the basis of it “Best Places to Work” awards. Quantum queries, evaluates and scores participating companies in categories ranging from team effectiveness, trust in senior leadership and alignment with company goals. Quantum identified three key areas employers should focus on to drive employee engagement: appreciation and value, a sense of connection, and growth and development.

“We created a culture where people come, we give them opportunities and they stay. Our retention rate is incredible and it’s something that we’re very proud of,” said Phillips Chief Operating and Financial Officer, Joseph C. Tilley.

With a nearly perfect score of 99.28%, Phillips Realty Capital ranked first in the medium company category of companies with 25-49 local employees. The Phillips score was also the highest among all of the companies surveyed, regardless of company size.

About Phillips Realty Capital

Phillips Realty Capital (PRC) is a leader in Washington, D.C. commercial real estate finance, structuring approximately $1.2 billion in debt and equity transactions a year and servicing a $2.0 billion loan portfolio for 24 institutional investors. Established in 1933, Phillips has a proven track record of collaborating with premier property owners, lenders, and investors to structure the most competitive transactions available in the market. With offices in Bethesda, Richmond and Charlottesville, dedicated teams of experts deliver reliable financial analysis, precise valuations, and deep knowledge of capital markets to engineer the proper mix of capital to meet each client’s needs.

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Washington Business Journal

http://www.bizjournals.com/washington/news/2015/05/15/medium-company-winner-phillips-realty-capital.html

Bethesda Magazine

http://www.bethesdamagazine.com/Bethesda-Beat/2015/Business-Notes-Local-Companies-Named-Best-Places-to-Work/

Leah Andress Joins PRC as Mortgage Analyst

Leah Andress has joined Phillips Realty Capital as a mortgage analyst. She will be working in the structured debt and equity finance team. She was previously an analyst in the specialty finance and real estate groups at FBR & Co., an investment bank.

Established in 1933, Phillips Realty Capital is a leader in Washington, D.C. real estate finance, structuring approximately $1.2 billion a year in debt and equity transactions and servicing a $2.0 billion loan portfolio for 23 institutional investors. With offices in Bethesda, Richmond and Charlottesville, Phillips has a proven track record of collaborating with premier property owners, lenders, and investors to structure the most competitive transactions available in the market.

See Washington Business Journal

http://www.bizjournals.com/washington/potmsearch/detail/submission/4457381/Leah_Andress?l=&time=&ind=&type=&ro=0