RealEstate Matters Luxury Apartments Break Ground in Charlotte's Mallard Pointe - High Associates Ltd.
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RealEstateMatters
Winter
2020
In This Issue
Luxury Apartments Break Ground
Luxury Apartments
Break Ground in
in Charlotte’s Mallard Pointe........................ 1
President’s Message....................................... 2
Charlotte’s Mallard Pointe
Unique Entertainment Experience
Comes To The Crossings ................................ 2
Hotels Stay On-Trend With Property
Improvement Plans (PIPs).............................. 3
What’s My Land Worth? ............................... 4
Responsible Growth,
an interview with Ken Hornbeck ................. 6
For our latest thinking on what matters
to you in real estate, please visit
www.highassociates.com.
C harlotte, N.C., is booming, and a
study by the National Multifamily
Housing Council and the National
Apartment Association has found that
the region expects to need at least 72,000
more apartment units by 2030. To help
meet this demand, High Real Estate
Group LLC is building an upscale,
260-unit apartment complex in the
Charlotte suburb of Mallard Pointe.
“Apartments are an important part of our
growth strategy, and this product is proven
to meet the needs of growing markets like Left to right: Mike Shirk, CEO, the High companies; Mark Fitzgerald, President and COO, High Real Estate Group
LLC; Brad Mowbray, Senior Vice President and Managing Director - Residential Division, High Associates Ltd.;
Charlotte,” said Mark Fitzgerald, president Greg Phipps, Councilman, City Council District Four; Andrew Basile, Director of Acquisitions and Development,
and COO of High Real Estate Group LLC. High Associates Ltd.; and James Oswald, Senior Vice President/Commercial Real Estate Manager, BB&T.
continued on page 5
Mallard Pointe, a 260 luxury apartment community by High Real Estate Group LLC, will open in 2020 at 11030 David Taylor Drive in Charlotte, N.C.
High Real Estate Group LLC 1 800.638.4414
RealEstateMatters
President’s Message
As the new year gets
Unique Entertainment
underway, you may
be asking important Experience Comes To
business questions
that require a real
estate strategy. You
The Crossings
should know that,
as a full-service real
estate resource, High
Real Estate Group
works not only with large businesses but with
small and mid-size companies as well.
Sole proprietors and small companies seeking
economical, convenient, professional office
space can find private, furnished offices at
Executive Offices at Greenfield (Lancaster, Pa.)
and Rossmoyne Business Center (Mechanicsburg,
Pa.). These beautifully appointed facilities provide
common administrative support for start-ups,
one- to several-person businesses, branch
offices, and firms needing temporary space.
Growing businesses often find larger office
and industrial facilities within our corporate
centers in various locations in the eastern US.
Others engage High to develop and implement
a strategic real estate plan to guide their growth
and create competitive advantages. High also
can renovate, expand, or build facilities from
the ground up with in-house development, Reel Cinemas opened its seven-screen boutique movie theater complex on November 8th.
Reel anchors the main street component of The Crossings at Conestoga Creek in Lancaster, Pa.
construction, architecture, space planning, and
W
interior design services. Projects may be valued hen Reel Cinemas opened in November, the theatre delivered a new concept
in the thousands, tens of thousands, or tens of to the movie experience. Located in the Main Street section of The Crossings,
millions depending on the need. Reel Cinemas shows first run feature films and offers 630 fully reclining, oversized,
Regardless of your business size, please know plush leather seats that have swivel tables that enable patrons to enjoy food and
that High Real Estate Group is prepared to assist beverages at their seats.
you in addressing your facility, construction, and “Reel Cinemas is a unique entertainment offering that’s the first of its kind in
strategic real estate needs. We are extremely the Lancaster market,” said Steve Evans, Senior Vice President and Managing
gratified to have seen so many of our clients’ Director - Retail Division, High Real Estate Group LLC. “It fulfills our vision for
businesses evolve and prosper over the years. We The Crossings to be an exciting entertainment, dining and shopping experience
welcome the opportunity to work with you and in a cool-convenient place.”
your enterprise in forging a path to greatness.
Reel Cinemas Brewpub Café has a menu that includes:
Thank you for a wonderful 2019, and we wish • Snacks • Starters • Salads • Burgers/Chicken Tenders/Cheesesteaks
you a successful and prosperous 2020.
• Brick Oven Pizzas • Sandwiches • Desserts • Beverages
• Beer • Wine • Cocktails
Reel Cinemas also enables its guests to schedule their movie experience in advance
by purchasing their tickets and reserving their seats online.
Mark Fitzgerald “As the theater industry continues to evolve, we look forward to bringing the
President and Chief Operating Officer
High Real Estate Group LLC
latest model that blends entertainment and dining to Lancaster,” said Greg Wax,
717.293.4446 President and CEO of Reel Cinemas, which also has theatres in Narberth, Pa. and
mfitzgerald@high.net Wayne, Pa.
High Real Estate Group LLC 2 800.638.4414
RealEstateMatters
Hotels Stay On-Trend With Property
Improvement Plans (PIPs)
By Russ Urban, President, High Hotels Ltd.
S taying relevant, current, and attractive to customers is
vital for every business. That’s why restaurants update
their menus, automakers introduce new features, and
“A PIP is a set of requirements that a hotel must
meet in order to remain in compliance with the
hotel owners implement Property Improvement Plans brand’s standards-and with guests’ expectations.”
(PIPs).
A PIP is a set of requirements that a hotel must meet in As you would expect, customer-driven trends are always changing
order to remain in compliance with the brand’s standards- and are carefully considered when brands plan their PIP. For
and with guests’ expectations. A PIP is required at various stages example, over the last few years the industry has been focused on
of a hotel’s life cycle, specifically at change of ownership, at upgrading technology in the guestrooms, as well as conversions
relicensing, at reflagging, and at regular renovation intervals from tubs to a more stylish shower in many of the bathrooms.
throughout the life of the hotel. Staying current with technology will always be a priority
A PIP can involve many parts of a property’s interior and exterior, and a challenge, and we have recently seen this play out in
such as room and lobby updates, indoor/outdoor pools and enhancements to our in-room entertainment systems and in
fitness areas, parking upgrades, and mechanical systems. In the Radio Frequency Identification (RFID) lock systems. All of our
case of High Hotels’ portfolio, we are required to meet unique hotels have now shifted to a digital key system that allows for
design specifications for each Marriott and Hilton brand and to mobile check-in.
offer specific services and amenities. continued on page 6
The Hampton Inn-Lancaster has a new exterior design that includes enhanced lighting, a signature fin design element, and modern paint scheme.
The porte-cochere received an update as well.
High Real Estate Group LLC 3 800.638.4414
RealEstateMatters
What’s My Land Worth?
By Brian Davison, CCIM, SIOR, Associate Broker, High Associates Ltd.
W hat’s the most important factor in determining the value
of a developable land? The answer is so cliché it’s almost
comical—location, location, location of course... Well, I would
“Besides location, there are two other
important factors that also need to be
suggest this answer is not necessarily the only thing that should considered: zoning and site conditions.”
be considered. The location is probably a great place to start,
but there are two other important factors that also need to be difficult to develop. The parcel had no public water or sewer and
considered: zoning and site conditions. Here are examples of was 30 minutes from a major interstate. There was also very little
how these three together can affect the value of your commercial residential population and the area lacked public transportation
real estate. for use by a potential workforce. This property had two (zoning
Location and site conditions) of the three factors needed to maximize its
value. Its location was a deficiency.
Once upon a time, there was a municipality that placed a
“business friendly” zoning on a large area of their community Zoning
in the hopes of attracting development other than residential There was a large, level site located a quarter mile from an
housing. The rationale behind the change was to increase the exchange to a major interstate and small town. A developer
tax basis, provide a place for companies to expand and avoid had placed the property under agreement and had a tenant
increased enrollment pressure on the local school system. prepared to sign a lease for a build-to-suit lease back once
The area was rural and had been farmed for generations. the specific building they were seeking was constructed.
After the zoning change was made, an owner decided to try The developer controlled the property through a purchase
and sell some of their land in the recently re-zoned area. Their agreement that included a properly written due diligence
parcel was level and did not have any environmental challenges clause and felt the township supported a zoning change
but when their commercial real estate broker presented their from Agricultural to Industrial.
marketing research data, the prospective seller was surprised by After following the municipalities’ required legal process to
the Realtor’s suggested offering price. Although the property change the zoning and thousands of dollars in engineering
had favorable zoning, the remote nature of the location made it continued on page 5
High Real Estate Group LLC 4 800.638.4414
RealEstateMatters
What’s My Land Worth? continued from page 4
and legal fees, the developer was surprised when the municipality expected return on investment. Although this was not the
rejected the proposal. The buyer terminated the agreement news anyone wanted to hear, the broker was able to keep
of sale the next day forfeiting all the time and resources invested both parties engaged and communicated the impact of the
in the property. This site had two (location and site conditions) new code changes on the value of the property. The parties
of the three factors covered in helping bring top value to the involved worked out agreeable terms and the property
seller but the agricultural zoning did not permit the intended eventually went to closing. The property’s zoning and location
use of the property by right. were appealing, but it was negatively impacted by site conditions
Site conditions due to the lapsed existing land improvements.
In a galaxy far, far, away, there was a large residentially zoned Location is without question a key factor in determining the
parcel, with existing vertical land improvements and a few new value of developable land, but don’t forget that there is much
homes already built. Unfortunately, the developer fell on hard more to the valuation story than a trusted cliché.
times and lost control of the property to their lender. The process
of foreclosure took several years and after gaining control, the
lender hired a commercial real estate broker to help them sell the
property. The broker found a new buyer and assisted in placing
the property under agreement.
During the due diligence period, it became apparent that Brian Davison,
some of the existing land improvements no longer met current CCIM, SIOR
Associate Broker
standards mandated by the state and local authorities. This 717.293.4513
change in site conditions dramatically impacted the buyer’s cell: 717.380.9257
ability to complete the community build out and meet their bdavison@high.net
Luxury Apartments Break Ground in Charlotte’s Mallard Pointe continued from page 1
“The community at Mallard Pointe will provide the luxury
lifestyle that is in great demand among millennials and
baby boomers,” he said.
DOG PARK
Mallard Pointe apartments will offer the choice of one, PROPOSED
BUILDING
two, or three bedrooms and will have high-end interior
appointments including quartz countertops and Slate
GE® ENERGYSTAR® appliances, under-cabinet lighting, EX. GROCERY STORE
and shower stalls in select units. The four-story buildings
will have elevator access. Residents will enjoy creature
comforts that include a pool with an outdoor kitchen ENTRY DRIVE PROPOSED
BUILDING
and fire pit, a fitness center and yoga studio, bike
OR DR
storage and repair facilities, pet-friendly spaces such
DAVID TAYL
as a dog park and pet spa, resident storage, nearby
walking trails, and recreational open space.
Mallard Pointe is close to I-85 and I-485, and major
places of employment nearby include University PROPOSED
BUILDING PROP. STORMWATER
Research Park and UNC Charlotte, while Cochran MANAGEMENT
Commons shopping center, anchored by a Harris
Teeter grocery store, is adjacent to the complex.
The apartments will be available for lease in fall 2020.
M
C AL
H L
U A
R R
C D EX. OFFICE
H C
R R
D E
EK
MALLARD POINTE APARTMENTS | SITE PLAN RENDERING
#17027 | 12.12.2018 | HIGH REAL ESTATE GROUP 0
High Real Estate Group LLC 5 800.638.4414
RealEstateMatters
Responsible Growth Hotels Stay On-Trend With
Property Improvement Plans
An Interview With Ken Hornbeck, CCIM, Senior Vice (PIPs)
President - Development, High Real Estate Group LLC continued from page 3
“Greeting our guests with
a sense of familiarity and
comfort when they walk in
is quite intentional.”
PIPs also protect the brand’s image by reinforcing
a sense of expected consistency. Whether you
stay at our SpringHill Suites by Marriott in Mt
Laurel, N.J. or the SpringHill in Allentown, Pa.,
the hotels will feel similar, look similar, and
offer the same services.
Greeting our guests with a sense of familiarity
and comfort when they walk in is quite
intentional. Every detail from the furniture
REM: What is your background? and fixtures to the color pallet is specifically
Ken: When I graduated from Virginia Tech, I had the opportunity to go to work chosen because it adheres to brand standards.
for Safeway, a national grocer, in their store design department. That’s We want the design and feel to resonate with
where I was introduced to the real estate side of the business, and it was our guests because it helps to differentiate our
intriguing and exciting just being on the deal side of the table. Fortunately, hotels from our competitors.
I was given that opportunity and from there I grew into my career. At the end of 2019 High initiated PIPs at the
REM: How did you get started in development? Hampton Inn in Mechanicsburg, Pa., and at
our Courtyard by Marriott in Lancaster, Pa.
Ken: My background is in design, and I had a bit of an architectural background.
Both are rolling out according to a brand
That provided the opportunity to go into the real estate department, where
timeline, and each will include a complete
I was helping to do small store expansions. That’s where I became exposed
redesign of all high-impact areas, including
to all the issues that come along with real estate. My career evolved from
the exterior, lobby, meeting space, and fitness
design into real estate, and specifically real estate development.
center, along with a full renovation of the
After seven years at Safeway, I moved to Giant in Carlisle. At Giant, I was guestrooms and bathrooms.
introduced to High Real Estate Group, trying to do some deals together.
Everyone wins when the hotel is able to
That’s where I met (former Senior Vice President - Development) Tom
incorporate the core signature elements and
Smithgall, my predecessor and mentor and (Senior Vice President and
level of quality that our guests have come to
Managing Director - Retail Division) Steve Evans. I was doing real estate expect, and PIPs are an important contributor
deals from the tenant side, and I recognized that there’s a lot more to High Hotels’ consistently high guest
excitement in being a developer. satisfaction scores.
REM: Please describe your business philosophy and how it applies to what you do.
Ken: I approach every opportunity as a win-win situation, meaning we can
accomplish High’s goals and objectives and partner with our municipalities
and our end-users to achieve theirs. By doing our job well, everybody
benefits.
REM: High recently opened several notable projects in Lancaster. What in your
view distinguishes them? Russell D. Urban
President
Ken: The new Lancaster Marriott East Tower and West Tower renovation has High Hotels Ltd.
been and continues to be a catalyst for change in the downtown. It’s 717.209.4035
continued on page 6 rdurban@highhotels.com
High Real Estate Group LLC 6 800.638.4414
RealEstateMatters
Responsible Growth continued from page 5
transformational in that it provides a basis for economic in Lancaster
vibrancy. The Crossings at Conestoga Creek offers an County. Boomers
innovative lifestyle-oriented dimension that’s all about and millennials are
experiences people can share, all in a smart growth 80 percent of new
development. From my point of view, both these projects apartment resi-
demonstrate that, as developers, we do what we say we’re dents across our
going to do. market-price
REM: Can you elaborate with an example? portfolio.
Ken: At The Crossings, we spent a lot of time working on REM: What’s coming
stormwater issues and trying to address flooding along up next in High’s
the Little Conestoga Creek. Stormwater is often a development
challenge for developers, as problems may go unaddressed pipeline?
for years before a project is considered. We heard from
a golf course downstream that they had flooding issues, Ken: A lot. We’re
and we were confident that our design would be working on some
beneficial. We have heard informally that the club is new multi-family
having fewer flooding problems. It makes us feel good opportunities in Lancaster and outside Lancaster. We’ve
to hear that feedback. started Mallard Pointe, a 260-unit luxury apartment complex
REM: Are “Eds and Meds” a trend locally? in Charlotte, N.C., and in 2020 we’re working on approvals
for a 350-unit complex in Charleston, S.C. High Hotels has
Ken: Absolutely. We have opportunities that are educational-
an aggressive growth strategy, and we’re looking at new
focused, local colleges looking for space for development.
grocery-anchored retail opportunities throughout our
We have five colleges holding classes in Greenfield for
more than 2,000 students. On the med side, it’s the operating area.
same thing. We have multiple opportunities that we’re REM: What drives your passion for business?
pursuing. They’re both great uses that we want to keep Ken: I believe that there’s no challenge we can’t figure out
in Lancaster County.
how to overcome. We’re good at what we do, and we
REM: Are you seeing any other trends? have great teams. I wake up every day eager to come to
Ken: On the multi-family apartment side, we have a lot of work. It’s fun. You can’t do this job if you don’t like
opportunities. The older demographic wants to stay working with people.
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P.O. Box 10008 • Corporate real estate services
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