Young Leaders Real Estate 101 held another sold-out event at CoStar Group’s headquarters in downtown DC. Over 120 attendees got the chance to learn about how real estate developers and architects work hand-in-hand to reduce risk and create value in their projects.
Stanley Sloter, President and Chief Executive Officer of Paradigm Development, and Faik Tugberk, Principal of Architects Collaborative Incorporated, shared their experiences working together on Block 19, a residential tower in Alexandria. Stanley kicked off the evening discussing fundamental metrics that are key to understanding the feasibility of real estate projects. He emphasized feasible projects “create value in excess of cost.” Stanley also explained the importance of capitalization rates, which can be critical in understanding the present and future value of a property. Stanley then switched gears from an overview of real estate economics to how they applied at the Block 19 site in Alexandria.
Faik built off of Stanley’s overview of the Block 19 project to dive into details about how design influences value creation and risk mitigation in the development process. The Block 19 building is a multi-story residential tower under construction near the Eisenhower Avenue metro station within the 230-acre, master planned Eisenhower East redevelopment area in Alexandria. Faik’s design concept moved away from an earlier, inefficient design consisting of two residential towers. By merging the design into one structure, the architects established one elevator core to provide vertical circulation in the building, maximizing efficiencies and creating value. The design team also was able to mitigate the effects of a Resource Protection Area (RPA) that encroached on the site by re-imagining a neglected stream bed into a tree-lined pond. Both Faik and Stanely explained how this design feature allowed for the horizontal expansion of the underground parking facility, another critical cost-saving feature that saved the team from drilling another underground level of parking.
After the event a few dozen attendees gathered at Lincoln restaurant near Thomas Circle to continue networking and discuss the ongoing cap rate compression in and around the greater Washington, DC area.