|
|
|
Hello my friends, and welcome to another edition of the Closing! About a year ago, a good friend and exceptional project manager made the transition from a for- profit developer to a non-profit. We all have such different and yet similar ways of creating housing, I was curious to see what he had observed since making the transition. With the caveat that these observations are from one person’s experience, below are a few interesting snippets from our interview:
What are the primary differences between for-profit and non-profit development?
On the for-profit side, the primary underwriting criteria was how much money the project would make and whether we believed the market fundamentals would create long term growth in value. On the non-profit side, the numbers are much more fuzzy – a project could be given the greenlight because of a unique partnership or a special story. I call this "story first, numbers second". This results in very unique projects (a syndicator friend of mine called them “jewel boxes”). They might require a large public subsidy, but they also are more likely to serve neglected communities in a meaningful way.
What do you like about each?
I have found caring and motivated people on both sides. I have continuously been impressed at how much soul my non-profit colleagues bring to the work. On the flip side, there are many days where I miss the speed at which we could make decisions and pivot on the for-profit side. There are other differences; I took a pay cut when I moved to the non-profit side, but the vacation and other benefits are much better.
What do you think each one can learn from the other?
I believe there’s room for both for-profit and non-profit to learn from each other. On the non-profit side, I think there is greater opportunity to consider market forces when designing projects – as an example, sometimes our properties lack the kind of amenity space that has become increasingly common in the market. Thorough market analysis was common in my for-profit roles. In a changing market like today, I worry that neglecting this competitive mindset puts our projects at risk and might lead to slower lease up and lower resident retention in the long term.
On the for-profit side, I believe there is room to engage in more meaningful community partnerships. If the project approach in my non-profit work was “story first, numbers second,” for-profit work can sometimes feel like “numbers first…” and then nothing else. I believe there is room for projects to make money while still being intentional in uplifting communities.
|
 |
| Upcoming Events |
- SCANPH
Pasadena, CA | Nov 1-2, 2023
Hope you can attend my panel!
Ping me for a meeting.
- AHF Live
Chicago, IL | Nov 13-15, 2023
Ping me for a meeting.
|
| |  |
|
|
|
|
|
| Rates |
Treasuries have continued their march higher and have reached their highest level since 2008. This calls for creative financing tricks and a lender who is actively problem solving.
Ping me for quotes! |
|
|
|
|
|
| Questions? |
Click here to schedule a debt discussion or deal brainstorming session
Let's Connect |
|
|
|
|
|---|
|
Did some kind person forward this newsletter to you? Are you enjoying it yourself and want to receive it directly? Send a note to get added to the mailing list! Subscribe Me! |
|
|
Other Interesting Items (OII)
|
|
|
|
Did you know that CBRE has a podcast? The Weekly Take is hosted by Spencer Levy, CBRE’s Global Client Strategist and Senior Economic Advisor for CBRE. Spencer is an engaging host and covers a wide array of real estate related topics, with over 150 episodes to date. Interesting recent topics include interview with Fortune 500 CEOs on building inclusive culter, use of Artificial Intelligence in Commercial Real Estate, Affordable Housing Investment, and so many more.
This is one of my favorite episodes. |
| |
| EPISODE 38: The Impossible Dream: How big things get done – and why many projects fail |
|
|
|
|
|
|
Unsubscribe
You may also unsubscribe by calling toll-free +1 877 CBRE 330 (+1 877 227 3330). Please consider the environment before printing this email. CBRE respects your privacy. A copy of our Privacy Policy is available online. For California Residents, our California Privacy Notice is available here. If you have questions or concerns about our compliance with this policy, please email PrivacyAdministrator@cbre.com or write to Attn: Marketing Department, Privacy Administrator, CBRE, 200 Park Ave. 19-22 Floors, New York, NY 10166. Address: 1420 fifth avenue 3800, Seattle WA 98101
THIS IS A MARKETING COMMUNICATION © 2025 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable but has not been verified for accuracy or completeness. CBRE, Inc. makes no guarantee, representation or warranty and accepts no responsibility or liability as to the accuracy, completeness, or reliability of the information contained herein. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners, and the use of such logos does not imply any affiliation with or endorsement of CBRE. Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited.
|
|
|
