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Key Takeaways: Managing Development Financing Amidst a Pandemic

by Erik Hayden, on Oct 15, 2020 10:45:30 AM


Last week, Urban Catalyst hosted a webinar panel in partnership with The Registry focused on ways to effectively manage development financing during a pandemic, and trends the industry is seeing. 

We had some of the leading industry leaders on the panel discussing how ground-up developers are making the most of the opportunities and challenges they’re currently faced with. 

Missed the live webinar? You can still catch the full webinar above. 

Key takeaways from the webinar include: 

    • Erik Hayden, Founder, Urban Catalyst – The overall macroeconomic trends of Silicon Valley are still pointing to San Jose as a great place to do ground-up development. In the short-term, the real estate market is seeing a decrease in residential rents and increased sublease space in the office market. But post-pandemic, plenty of tech companies will still need physical workplaces to expand into, and now is the time for them to scope out properties. 
  • Julie Treppa, Partner, Farella Braun + Martel – Market trends are seeing a lot more interest in incentive programs like Opportunity Funds. The reason? Many investors have a gap they need to fill, and OZs are a high-reward opportunity. 
  • Gary Dillabough, Venture Partner, Navitas Capital - San Jose has the potential to become one of the most important and influential cities in the world. In addition to the pandemic, poor urban planning has hindered the region from reaching its full potential as an attractive place to work and live. That’s why developers are shifting their focus and working harder than ever before to ensure cities like San Jose are a great place for tech workers to settle in. 
  • Jefrey Henderson, Executive Vice President, CBRE – When it comes to development, now is the time to reassess relationships between capital and debt, existing buyers and the marketplace. People are increasingly trying to extend and push out their risk with their lenders and development teams. 

  • Scott Swisher, Managing Director, Acore Capital  – On a macro level, it’s harder to underwrite cash flows today. There’s more uncertainty about how much rent prices will fall and rise again. More lenders are looking into a downsized scenario as people are temporarily moving out of cities to less congested areas. It’s more a matter of if – not when – people will flock back to city living, and smart developers are keeping this top of mind. 

Watch the full webinar for more insights on how real estate developers are leveraging today's hurdles in order to build community resilience and create better opportunities for tomorrow.

Did you know that if you invest with us between now and October 31, you can get bonus units of 1.5%? Contact us to learn more.

 

The statements, views, and opinions expressed herein are those of the individuals making the statements and do not necessarily reflect the official policy or position of Urban Catalyst Manager LLC or any investment sponsored by Urban Catalyst LLC and are provided for informational purposes only and are not intended to be, nor should be construed or used as financial, legal, tax or investment advice, nor should this information be used or considered as an offer to sell or a solicitation of any offer to buy any interest in Urban Catalyst Opportunity Fund I LLC (the “Fund”), an investment sponsored by Urban Catalyst LLC (the “Sponsor”). 

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Topics:Opportunity ZonesSan JoseSilicon Valleyoffice

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