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Jul 16, 2019

Posted on
Jun 28 2016

The Kellogg Real Estate Venture Competition and Conference was again a great success this year. Over 200 guests attended two separate industry panels, a keynote fireside chat with Larry Levy, and a top-tier real estate MBA venture competition.

Our first panel was led by four highly respected industry professionals, three of whom presented a case study on a property that embodied the spirit of an adaptive reuse development.

  • Bruce Cohen, CEO of Wrightwood Financial (moderator)
  • Scott Goodman, Founder and Chairman Emeritus of Sterling Bay
  • Bob Underhill, Executive Vice President of Shorenstein
  • Paul Pariser, Co-CEO of Taconic Investment Partners
Scott Goodman led off the event presenting Sterling Bay’s iconic redevelopment of the meatpacking district into what is now known as Fulton Market. He described the risks and opportunities of the project through a visually stimulating slideshow of pre and post construction pictures, design ideas, and time lapse videos. 1K Fulton was repositioned from an old meatpacking refrigeration plant into Google’s new Chicago headquarters. This project rejuvenated the west loop which is now one of Chicago’s hottest areas for restaurants, shopping, residences, art galleries and offices.

1001-1029 W Carroll Ave Chicago, IL
1001-1029 W Carroll Ave Chicago, IL

Bob Underhill of Shorenstein presented another iconic development called Market Square in San Francisco, which is now the home of Twitter, Inc. The two buildings on the property had been run as a merchandise mart but were 70 percent vacant upon acquisition. Shorenstein’s plan was to repurpose the first building into offices while keeping its historic art deco façade, and completely renovate the second building into a mixed-use office and retail. The renovation was started on speculation in March 2011 and quickly transformed enough to lure Twitter in as a tenant before the renovation was complete. The project concluded in 2013 with a new lobby, rooftop terrace, retail market, and new office suites. Twitter has since leased the top seven floors in the first building and all of the non-retail space in the adjacent building. Shorenstein sold the property in 2015 for $900mm after an initial investment of around $300mm. They still retain two percent ownership in the property.

1355 Market St, San Francisco
1355 Market St, San Francisco

Next, Paul Pariser finished the panel discussion with another awe-inspiring redevelopment project at 401 West 14th street in Manhattan. Paul’s creativity was well represented during the delivery of this case. This property was located in the meatpacking district of NYC with a long-term meat packing tenant that had a securitized first mortgage with prohibitive prepayment clauses. Paul and his team were able to navigate these challenges by purchasing a nearby property and relocating the tenant. Additionally, they gained approval from the city to build a penthouse residential unit on the top floor. They also added new core and redesigned the lobby and first two floors. These changes ultimately attracted Apple to lease the retail space. It is people like this and the projects they deliver that enable real estate professionals to transform communities and enrich the lives of everyone around them.

401 West 14th Street New York, New York
401 West 14th Street New York, New York

About the Author

This article was written by Thomas Welch '17.