1 00:00:01,360 --> 00:00:03,640 Speaker 1: This episode is brought to you by P and C Bank. 2 00:00:04,000 --> 00:00:06,760 Speaker 1: A lot of people think podcasts about work are boring, 3 00:00:07,000 --> 00:00:10,840 Speaker 1: and sure they definitely can be, but understanding a professionals 4 00:00:10,920 --> 00:00:14,160 Speaker 1: routine shows us how they achieve their success little by little, 5 00:00:14,560 --> 00:00:18,200 Speaker 1: day after day. It's like banking with P and C Bank. 6 00:00:18,680 --> 00:00:21,480 Speaker 1: It might seem boring to safe plan and make calculated 7 00:00:21,480 --> 00:00:24,599 Speaker 1: decisions with your bank, but keeping your money boring is 8 00:00:24,640 --> 00:00:27,960 Speaker 1: what helps you live or more happily fulfilled life. P 9 00:00:28,080 --> 00:00:32,879 Speaker 1: and C Bank Brilliantly Boring since eighteen sixty five. Brilliantly 10 00:00:32,960 --> 00:00:35,600 Speaker 1: Boring since eighteen sixty five is a service mark of 11 00:00:35,600 --> 00:00:38,840 Speaker 1: the PNC Financial Service Group, Inc. P and C Bank 12 00:00:39,280 --> 00:00:45,920 Speaker 1: National Association Member FDIC erness What's Up? You ever walk 13 00:00:45,920 --> 00:00:49,000 Speaker 1: into a small business and everything just works like the 14 00:00:49,080 --> 00:00:53,200 Speaker 1: checkout is fast, the receipts are digital, tipping is a breeze, 15 00:00:53,479 --> 00:00:55,640 Speaker 1: and you're out the door before the line even builds. 16 00:00:55,960 --> 00:01:00,240 Speaker 1: Odds are they're using Square? We love supporting business that 17 00:01:00,320 --> 00:01:02,959 Speaker 1: run on Square because it just feels seamless. Whether it's 18 00:01:03,000 --> 00:01:06,000 Speaker 1: a local coffee shop, a vendor at a pop up market, 19 00:01:06,160 --> 00:01:09,040 Speaker 1: or even one of our merch partners. Square makes it 20 00:01:09,200 --> 00:01:12,559 Speaker 1: easy for them to take payments, manage inventory, and run 21 00:01:12,600 --> 00:01:16,600 Speaker 1: their business with confidence, all from one simple system. If 22 00:01:16,640 --> 00:01:19,480 Speaker 1: you're a business owner or even just thinking about launching 23 00:01:19,520 --> 00:01:22,520 Speaker 1: something soon, Square is hands down one of the best 24 00:01:22,520 --> 00:01:25,680 Speaker 1: tools out there to help you start, run and grow. 25 00:01:25,959 --> 00:01:28,959 Speaker 1: It's not just about payments, it's about giving you time 26 00:01:29,040 --> 00:01:32,000 Speaker 1: back so you can focus on what matters most ready. 27 00:01:32,040 --> 00:01:35,399 Speaker 1: To see how Square can transform your business, visit Square 28 00:01:35,480 --> 00:01:40,000 Speaker 1: dot com backslash go backslash eyl to learn more that 29 00:01:40,200 --> 00:01:45,640 Speaker 1: Square dot com backslash, go backslash eyl. Don't wait, don't hesitate. 30 00:01:45,760 --> 00:01:48,160 Speaker 1: Let's Square handle the back end so you can keep 31 00:01:48,160 --> 00:01:49,400 Speaker 1: pushing your vision forward. 32 00:01:51,800 --> 00:01:54,120 Speaker 2: Let's say if someone sees an opportunity in la or 33 00:01:54,120 --> 00:01:56,960 Speaker 2: Detroit and they want to get a group of investors together, 34 00:01:57,720 --> 00:02:00,600 Speaker 2: what steps would you have them take to make sure 35 00:02:00,640 --> 00:02:03,200 Speaker 2: that they are buying the right area and that that 36 00:02:03,280 --> 00:02:05,240 Speaker 2: building will actually be a success and they won't go 37 00:02:05,320 --> 00:02:07,920 Speaker 2: to debt. I try to acquire a property while the 38 00:02:07,960 --> 00:02:09,560 Speaker 2: commercial real estate market is now. 39 00:02:10,240 --> 00:02:11,680 Speaker 3: Well, I think they got to look at what the 40 00:02:11,760 --> 00:02:16,240 Speaker 3: other uses are. So, for example, in a office building market, 41 00:02:16,639 --> 00:02:20,400 Speaker 3: vacancy rates at you know, ten percent or below mean 42 00:02:20,480 --> 00:02:23,040 Speaker 3: that's a healthy office market. There are very few markets 43 00:02:23,040 --> 00:02:25,919 Speaker 3: in the country where that's the case. Miami is probably 44 00:02:25,960 --> 00:02:28,079 Speaker 3: one of them, Miami Beaches the second one. 45 00:02:28,160 --> 00:02:29,720 Speaker 4: I think there are very few like that. 46 00:02:29,880 --> 00:02:34,200 Speaker 3: So then you look at are what's the apartment vacancy 47 00:02:34,280 --> 00:02:37,480 Speaker 3: rates and the apartment vacancy rates, what are they running? 48 00:02:37,520 --> 00:02:39,840 Speaker 3: And if they're running, you know, vacancy rates on the 49 00:02:39,880 --> 00:02:43,360 Speaker 3: apartment side, that is you know, maybe somewhere in the 50 00:02:43,360 --> 00:02:46,840 Speaker 3: neighborhood of you know, five percent vacancies and that's a 51 00:02:46,880 --> 00:02:51,000 Speaker 3: healthy market. And in places like New York and UH 52 00:02:51,440 --> 00:02:55,440 Speaker 3: and DC and even Miami to a degree, these vacancy 53 00:02:55,480 --> 00:02:58,760 Speaker 3: rates are even less. So New York's vacancy rate is 54 00:02:59,160 --> 00:03:01,440 Speaker 3: less than you know, two percent, So that would mean 55 00:03:01,480 --> 00:03:07,000 Speaker 3: it's very conducive to having new apartments. And then once 56 00:03:07,040 --> 00:03:09,320 Speaker 3: you look at vacancy rates and you look at rental rates, 57 00:03:09,560 --> 00:03:13,000 Speaker 3: and if the rental rates, you know, can support the 58 00:03:13,040 --> 00:03:17,600 Speaker 3: acquisition and the conversion of a new building, then it 59 00:03:17,639 --> 00:03:20,520 Speaker 3: makes sense to do because you've got strong rental rates 60 00:03:20,520 --> 00:03:23,400 Speaker 3: that are supported financially and vacancy rates are low, which 61 00:03:23,440 --> 00:03:26,880 Speaker 3: are showing a significant demand. And the same thing with hotels. 62 00:03:27,080 --> 00:03:29,120 Speaker 3: I mean, you can look at converting office buildings in 63 00:03:29,160 --> 00:03:33,519 Speaker 3: the hotels as well, and so, but it's these conversions 64 00:03:33,560 --> 00:03:36,280 Speaker 3: are not for inexperienced people. So they've got to make 65 00:03:36,320 --> 00:03:40,200 Speaker 3: sure that they get a contractor that understands conversions and 66 00:03:40,400 --> 00:03:43,360 Speaker 3: architects that understands conversions. And then if they're going to 67 00:03:43,440 --> 00:03:46,640 Speaker 3: do something to scale themselves as a group, then they 68 00:03:46,680 --> 00:03:50,760 Speaker 3: want to hire a season construction project manager that works 69 00:03:50,760 --> 00:03:54,240 Speaker 3: for the owner with the investment group and who has 70 00:03:54,320 --> 00:03:55,920 Speaker 3: experiencing conversions as well. 71 00:03:57,400 --> 00:04:01,040 Speaker 5: So to build dis gootspaper in New York like estimate, 72 00:04:01,080 --> 00:04:02,480 Speaker 5: how how much would that cost? 73 00:04:03,040 --> 00:04:04,320 Speaker 4: About three billion dollars? 74 00:04:04,720 --> 00:04:07,480 Speaker 5: Okay, so how do you how do you go about 75 00:04:07,520 --> 00:04:11,400 Speaker 5: securing financing for these large scale projects? 76 00:04:12,000 --> 00:04:14,400 Speaker 4: Well, it's interesting. So the way you do this is 77 00:04:14,480 --> 00:04:16,720 Speaker 4: you go to you know, a group of. 78 00:04:16,640 --> 00:04:20,839 Speaker 3: Banks normal you know, the traditional banks, the JP Morgan Chases, 79 00:04:20,960 --> 00:04:24,039 Speaker 3: the Bank of America's, you know, the wealth banks and 80 00:04:24,040 --> 00:04:26,600 Speaker 3: so forth. And you go to those banks to get 81 00:04:26,640 --> 00:04:29,880 Speaker 3: senior financing. And that's a senior loan. And normally you're 82 00:04:29,920 --> 00:04:33,679 Speaker 3: going to borrow between sixty and seventy percent. So let's 83 00:04:33,800 --> 00:04:36,479 Speaker 3: use just for simple math that you know you're going 84 00:04:36,560 --> 00:04:39,279 Speaker 3: to borrow seventy percent, so thirty percent is going to 85 00:04:39,279 --> 00:04:42,120 Speaker 3: be equity and so thirty percent is nine hundred million 86 00:04:42,200 --> 00:04:45,440 Speaker 3: dollars so by Affirmation towers. So then you're going to 87 00:04:45,520 --> 00:04:52,200 Speaker 3: go to a large global institutional you know, private equity 88 00:04:52,200 --> 00:04:55,760 Speaker 3: fund and you're going to go to maybe a couple 89 00:04:55,760 --> 00:05:00,160 Speaker 3: of them, and they are going to put in somewhere 90 00:05:00,680 --> 00:05:06,160 Speaker 3: between eighty percent or so of that you know, nine 91 00:05:06,240 --> 00:05:10,480 Speaker 3: hundred million dollars. So that would mean that the developer, 92 00:05:10,600 --> 00:05:14,000 Speaker 3: our team would have to put in ten percent, which 93 00:05:14,000 --> 00:05:16,279 Speaker 3: would be ninety million to twenty which is one hundred 94 00:05:16,279 --> 00:05:19,200 Speaker 3: and eighty million dollars. And so our group would put 95 00:05:19,240 --> 00:05:23,560 Speaker 3: that up. Most likely we would bring in a institutional 96 00:05:24,839 --> 00:05:28,839 Speaker 3: general partner. They would come in and they would put 97 00:05:28,839 --> 00:05:32,080 Speaker 3: in half of that or a little more. And so 98 00:05:32,160 --> 00:05:35,080 Speaker 3: the developer you know, generally going to put in between 99 00:05:35,080 --> 00:05:37,440 Speaker 3: fifty and one hundred million dollars between our gruth. 100 00:05:39,680 --> 00:05:43,560 Speaker 1: So when you're approaching obviously Affirmation Tower is a huge project. 101 00:05:43,839 --> 00:05:46,360 Speaker 1: But I know hospitality is something that you're well versed 102 00:05:46,480 --> 00:05:49,479 Speaker 1: as well. Last time we spoke with the UIOU, you 103 00:05:49,480 --> 00:05:53,600 Speaker 1: were talking about developing hospitality throughout maybe the Caribbean. What's 104 00:05:53,640 --> 00:05:57,320 Speaker 1: the approach there, because it's is it completely different when 105 00:05:57,360 --> 00:05:58,760 Speaker 1: you're trying to develop in that space. 106 00:05:59,760 --> 00:06:02,760 Speaker 3: Really, So in fact, Affirmation Tower is going to be residential. 107 00:06:02,839 --> 00:06:04,800 Speaker 3: If we get to build it, it will be the 108 00:06:04,839 --> 00:06:09,320 Speaker 3: Civil Rights Museum, and then it'll be two it'll be 109 00:06:09,760 --> 00:06:19,360 Speaker 3: residential rentals with affordable housing. Then it will have two hotels, 110 00:06:21,360 --> 00:06:24,760 Speaker 3: you know, a boutique hotel and then an ultra luxury hotel, 111 00:06:25,600 --> 00:06:28,880 Speaker 3: and then above that on the top floors it'll have 112 00:06:29,600 --> 00:06:33,279 Speaker 3: luxury condos and then an observation deck on the roof. 113 00:06:33,400 --> 00:06:35,400 Speaker 3: So there's a big mixture of uses because the building 114 00:06:35,440 --> 00:06:37,680 Speaker 3: is a very big building, you know, a few million 115 00:06:37,720 --> 00:06:40,320 Speaker 3: square feet, and so mixing up the uses it's like 116 00:06:40,440 --> 00:06:43,800 Speaker 3: consider a building being like a neighborhood. Almost a building 117 00:06:43,839 --> 00:06:46,360 Speaker 3: of that size is you know, like a neighborhood. You know, 118 00:06:46,400 --> 00:06:48,720 Speaker 3: so you're going to have a mixture of uses in 119 00:06:48,760 --> 00:06:52,360 Speaker 3: that building, and that, you know, helps drive the economics here. 120 00:06:52,520 --> 00:06:55,040 Speaker 3: If you're going to do a one off hotel, then 121 00:06:55,400 --> 00:06:57,960 Speaker 3: there the process is different because the first thing you're 122 00:06:58,000 --> 00:06:59,680 Speaker 3: going to need to do is determine who's going to 123 00:06:59,760 --> 00:07:01,960 Speaker 3: opt break the hotel, who's going to brand, and who's 124 00:07:01,960 --> 00:07:04,920 Speaker 3: going to operate it. And I wouldn't recommend building a 125 00:07:05,000 --> 00:07:09,200 Speaker 3: hotel of any type you know from either a three 126 00:07:09,279 --> 00:07:11,440 Speaker 3: star or a five star hotel, I wouldn't do it 127 00:07:11,440 --> 00:07:15,240 Speaker 3: without a brand. And then given that you know normally 128 00:07:15,320 --> 00:07:19,360 Speaker 3: it's a real estate entrepreneur who is building it, then 129 00:07:19,400 --> 00:07:21,440 Speaker 3: you want the brand to be able to manage the 130 00:07:21,440 --> 00:07:25,240 Speaker 3: hotel to or to hire a third party hotel manager 131 00:07:25,240 --> 00:07:28,920 Speaker 3: that specializes in managing hotels, so you get a company 132 00:07:28,920 --> 00:07:32,520 Speaker 3: that does that, and then then after that the exercise 133 00:07:32,600 --> 00:07:36,960 Speaker 3: is pretty much the same as building a apartment building 134 00:07:37,160 --> 00:07:39,840 Speaker 3: or an office building. The only difference is is that 135 00:07:39,880 --> 00:07:43,120 Speaker 3: you have to furnish the hotel, So you add another 136 00:07:43,200 --> 00:07:47,400 Speaker 3: level of complexity because you're hiring an interior designer and 137 00:07:48,160 --> 00:07:51,960 Speaker 3: you know, a furniture purchasing agent and the like, and 138 00:07:52,640 --> 00:07:54,920 Speaker 3: the assembling of the furniture and the delivery of the 139 00:07:54,920 --> 00:07:57,440 Speaker 3: furniture and all of that has to meet the brand 140 00:07:57,520 --> 00:07:59,840 Speaker 3: standards of your hotel brand and operator. 141 00:08:00,040 --> 00:08:03,600 Speaker 6: An illegal alien from Guatemala charged with raping a child 142 00:08:03,680 --> 00:08:07,480 Speaker 6: in Massachusetts. An MS thirteen gang member from Al Salvador 143 00:08:07,720 --> 00:08:11,840 Speaker 6: accused of murdering a Texas man of Venezuelan charged with 144 00:08:11,920 --> 00:08:15,840 Speaker 6: filming and selling child pornography in Michigan. These are just 145 00:08:15,920 --> 00:08:19,679 Speaker 6: some of the heinous migrant criminals caught because of President 146 00:08:19,720 --> 00:08:23,320 Speaker 6: Donald J. Trump's leadership. I'm Christy nom the United States 147 00:08:23,320 --> 00:08:28,120 Speaker 6: Secretary of Homeland Security. Under President Trump, attempted illegal border 148 00:08:28,160 --> 00:08:31,680 Speaker 6: crossings are at the lowest levels ever recorded, and over 149 00:08:31,760 --> 00:08:34,960 Speaker 6: one hundred thousand illegal aliens have been arrested. If you 150 00:08:35,040 --> 00:08:38,920 Speaker 6: are here illegally, your next you will be fined nearly 151 00:08:39,000 --> 00:08:43,000 Speaker 6: one thousand dollars a day, imprisoned, and deported. You will 152 00:08:43,040 --> 00:08:46,680 Speaker 6: never return. But if you register using our CBP home 153 00:08:46,720 --> 00:08:50,120 Speaker 6: app and leave now, you could be allowed to return legally. 154 00:08:50,480 --> 00:08:55,240 Speaker 6: Do what's right. Leave now. Under President Trump, America's laws, 155 00:08:55,400 --> 00:08:57,840 Speaker 6: border and families will be protected. 156 00:08:57,920 --> 00:09:00,000 Speaker 4: Sponsored by the United States Department of Homeland Security.