Real Estate 101: Financing and Designing a Project- From Site Control Up To Construction

On Monday, February 20, the Young Leaders Group hosted its second Real Estate 101 discussion of the season, the discussion focused on everything from “Site Control to Construction.” With the help of a distinguished panel, attendees were provided with a complete picture of the design and financing processes integral to the construction phase of development.  The sell-out event brought together a dynamic mix of local real estate professionals. 

Members of the panel offered thoughtful insights and shared unique personal experiences pertaining to the construction stage. Below is a quick summary of each member’s main discussion points:

Peter Stuart, Managing Partner at outlier Realty Capital and developer on the panel, emphasized the importance of conducting thorough due diligence and working efficiently with design, engineering, and legal team players during the early stages of the project lifecycle.

Michael Pittsman, EVP at Davis Construction, stressed the importance of pre-construction services in the early project phases. Collaborating with project team members to estimate costs and identify long-lead items is preferred over value engineering a building.

David Haresign, Founding Partner at Bonstra Haresign Architects, spotlighted the “right” of the architect. Depending on the project type, location, etc., the selection of the project architect should match the mission of the project. David shared with the audience that preliminary density assessment and massing can be extremely helpful in understanding the density “potential” of the site.

Antonio Marquez, EVP at Eagle Bank, reiterated that developers should find the lending institution that best fits the project type. Bankers pursue consistent partners and a strong business plan, but are ultimately focused on the end net operating income for the property. Due to their long-term positions and the associated risks, banks are most concerned with the optimization of operational cash flow.

The audience, a full and attentive crowd, was very interactive and asked thought-provoking questions that further contributed to the in-depth conversation. The Young Leaders Group will continue its “Too Embarrassed to Ask” series on Wednesday, April 3^rd, with discussions focusing on post-construction operations.