Kim Madrigal, editor of Greenlandlady.com kicks off a multi-part interview with me focusing on NOI and sustainability in the context of special servicing. It was a lot of fun and I’m honored to be mentioned on such a strong site.
I liked this section of an interview with Andy Padian, recently appointed VP for Energy Initiatives at Community Preservation Corporation. CPC is an excellent organization which has been lending and improving properties in the NY-NJ-CT tristate since 1972. Their recognition of the opportunities found in sustainability and ‘green lending’ are a major step forward in bringing sustainable methods to affordable housing. Slowly and surely, it is becoming standard operations.
CPC: How do you define Green vs. Sustainability? What defines energy efficiency?
Andy Padian: GREEN is a particular idea like bamboo flooring. It’s a trend but not really something you put into practice in your day to day living. Sustainability is something bigger; it entails making virtually no cost changes to existing specifications to ensure energy efficiency. These changes are good and you’re helping the environment. And in so doing, you’re conserving energy.
via The Community Preservation Corporation.
As this blog slowly approaches 100 posts, please pardon this update on blog directions and professional background.
Since the layoff from MMA, posting has included LIHTC, green renting, (sub)urban design, and operations. Future topics will include more of the same with additional commentary on public policy and the inclusion of sustainable certifications (LEED, Green Globes, Southface, NAHB, e.g.), as seen by this unintentionally provocative guest post. The ultimate goal is to increase sustainability in multifamily by owners, renters, and lenders through incentives and rewards rather than proscription. There are market-based solutions to these goals and I hope readers will help identify them.
Within the niche of multifamily real estate, this blog aims to reflect the multiple sources of its success or failure. In addition to 11 years in development, finance, and asset/portfolio management, my undergraduate studies in political science and graduate studies in real estate finance lead to an interest in all aspects of real estate. I have always worked as an owner or (distressed) lender, so writings will almost always reflect that bias. As an owner’s asset manager, I was deeply involved in operations, so I will attempt to reflect, where appropriate and able, the challenge of property operations. While I admired the work done by the site teams, I have always had the highest expectations, so occasional jogs into operational theory are an effort to provide additional knowledge to asset managers and others who are not in regular contact with properties.
Much of my recent experience required the 1,000 ft view of troubled assets as well as the 30,000 ft view of portfolio goals within corporate funding limitations. The distressed portfolio was a nationwide mix of 20-50 REO and watchlist properties with varying levels of need and operational competence. Some required gentle guidance and recognition while others required replacement of management and a completely new plan of operation. Still others were immediately marked for sale. Much as I would like to say I could save all of the properties assigned to me, some simply were not worth the expenditure of time and treasure.
As for my time off, I am doing some non-profit consulting work on community development, foreclosure assistance, and sustainable underwriting. Should any readers have thoughts, requests, or leads, please do not hesitate to contact me, info@multifamilyguide.com
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