Spotlight On: Brett Forman, President & CEO, Trez Forman Capital

By Max Crampton-Thomas

 

2 min read July 2019 — The demand for residential and commercial real estate development in Palm Beach County is at a high, and developers are jumping at the opportunity to capitalize. This spike in demand has not only been beneficial to developers but also to those who are helping fund this development. Invest: Palm Beach recently sat down with Brett Forman, President and CEO of Florida-based, commercial bridge lender Trez Forman Capital. He discussed how Palm Beach County is uniquely positioned for real estate development, and how his company is benefiting from the boom in the market.

Where are you seeing the highest demand for your services? 

We experience the highest demand from developers of condominiums or multifamily rental apartments. There are a variety of financial firms pursuing these type of deals, but we offer something slightly different. We’re competing with banks every day, and we’re competing with more traditional mezzanine players and preferred equity investors. As a result, we have to be creative and offer a unique one-stop shop, including higher proceeds than the banks and non-recourse options. 

How is Palm Beach County a unique market for real estate development? 

Palm Beach County is home to some of the most expensive residential real estate in the world. On the opposite end of the spectrum, it’s also home to some of the poorest areas. So when you talk about Palm Beach real estate, you’re talking about a very diverse asset mix.

Trez Forman is more or less asset-agnostic; we lend against residential real estate, whether it’s apartment communities for rent, single-family houses for rent or condominiums for sale. We don’t necessarily construct homes, but we finance the lot on which developers do the horizontal development. 

What differentiates Trez Forman Capital from a traditional bank? 

It’s very easy to understand what differentiates us from the banks, since the banks are highly regulated. They have to do things according to what the regulatory agencies prescribe, and their leverage is usually much lower and typically requires recourse. What we’re offering is a much higher loan-to-cost solution. Trez Forman basically can take what the bank and the preferred equity investor offers and combine it to provide our clients with a one-stop solution that has surety of execution. We like to under-promise and over-deliver. We can fund a deal in 30 to 45 days, unlike a bank that may not be able to lend in that timeframe.

 

To learn more about our interviewee, visit its website:

https://www.trezforman.com/

No Stopping Tampa Tourism Rocket

Max Crampton-Thomas

2 minute read July 2019 — Quite often when the city of Tampa Bay is mentioned it is in the context of how rapidly the area is growing both in population and economically. The boom Tampa Bay is experiencing can be attributed to a great many things, including a bustling tech sector, a revolutionary healthcare market and first-class educational institutions. Perhaps most influential in all this growth, however, has been the economic rocket that is the city’s tourism sector. Tourism in Tampa Bay has steadily risen year after year, and with events like Super Bowl LV and Wrestlemania 36 on the horizon, that trend shows no signs of slowing down.

The spike in tourism to the region has not been by chance. Rather, it can be attributed to the focused and deliberate efforts made by local businesses, government and community organizations. Invest: Tampa Bay recently spoke with Santiago Corrada, the president and CEO of Visit Tampa Bay, about the record year the city had in 2018. “We had an incredible end to the 2018 calendar year. It was another record-setting year for hotel revenue, which is phenomenal given that we have had record-setting years every year since 2014. We ended 2018 at $673.5 million in hotel taxable revenue, which was almost 5% higher than the previous year at $644 million. This is important for us because anytime a county hits $600 million in taxable revenue, it is granted the designation of a high-impact tourism destination. We have been able to reach that designation for two years in a row, and this year was even more important because our county commission just approved a rise in the tourism tax from 5% to 6%, which is the highest that any county can collect.” The growth in tourism throughout Tampa Bay also has a spillover effect. As demand increases and new attractions open they bring with them fresh job opportunities for local residents.

To sustain momentum and build on these milestones, Corrada says that attracting new hotels to the city makes sense. “There are certain big-name, five-star brands we do not have in Hillsborough County, and as the business plan makes sense to add these properties then we will. These new properties will yield different business groups and markets for the region. We have to continue to capitalize when we have an opportunity to expand our reach, refresh our brands and to always have something new to bring visitors back,” Santiago told Invest. “That’s why new developments like the Tampa Riverwalk are so important, why food halls are so important and why Busch Gardens updating and adding its roller coasters is significant because it gives people a reason to want to come back to Tampa Bay. Sustainability in this industry has to do with still being aggressive and still going after it.”

Tampa Bay is quickly becoming a premier, must-visit destination in Florida. Tourism in the city of Tampa Bay shows no signs of slowing down, and due to the efforts of organizations like Visit Tampa Bay will likely reach new heights in 2019. 

To learn more about our interviewees, visit their websites:

https://www.visittampabay.com/

Spotlight on: William Burns, Tax Office Managing Partner, BDO

By Yolanda Rivas

2 min read JULY 2019 — Accountants and financial professionals play an important role in the global economy and business model, taking on an array of roles within organizations in all industries. According to the Bureau of Labor Statistics the employment of accountants and auditors is projected to grow 10 percent from 2016 to 2026, faster than the average for all occupations. 

Accountants can bring a significant perspective of the economy and industries growth. Our ‘Spotlight on’ for this week brings a perspective of what are the industries looking for in regards to advisory and how the local accounting companies impact the labor pool.

BDO offers a wide range of services including advisory, audit/assurance and tax services. Which are most in demand in Philadelphia?  

The core services that we provide in Philadelphia are audit and tax, which is where we are seeing the most demand. Our recent acquisition of AC Lordi will allow us to bolster what we can do regarding advisory and scale us up to the next level. We have seen an increase in demand for our services from healthcare, life sciences, and manufacturing and distribution. In addition, we have seen an influx of people reaching out for advice regarding maximizing the benefits of tax reform. We expect to see an increased demand for advisory services related to tax reform, especially surrounding Opportunity Zones.

What are BDO’s efforts to recruit talent from the local pool?

Six years ago, BDO merged a select group of geographically close practices, retiring a number of partners and ushering in a new class. We now find ourselves in a position where we can grow exponentially in one of the largest markets in the country. Our focus on targeted growth means we are constantly adding talent as we look to expanding our tax specialties.

There is always a hunt for qualified talent. To combat that, we try to over-hire at the entry level. Turnover in our industry is relatively high and by attracting more students at the front end we have more opportunity to offer them higher positions when people decide to leave. We have partnerships with local universities and we recruit on a regional and national level. We also have a program to identify and attract students to the region from all over the nation.

What Impact does technology have on the accounting and financial sectors?

Technology has a huge impact on how we operate, since most of what we do is software driven. Data analytics is making us more efficient and many firms are using it as a tool within their audit and tax practices. Those firms that aren’t focused on using and developing technology are going to lag behind.

To learn more about our interviewee, visit:

https://www.bdo.com/about/us-locations/philadelphia-office 

Miami Banks Leading Tech Charge

By Yolanda Rivas

July 2019

2 min read  — Advances in technology are having a dramatic influence in the banking sector across the globe. Innovations are impacting the delivery of products and services, making the banking process faster, easier and more reliable. Customer satisfaction and increased competition are driving the tech push, and there is more on the horizon.

“We are changing our core banking system and investing more than $25 million to make that change. It’s an important step for us because we know technology will be the driving force to our growth in the future,” Fernando Beyruti, CEO of Itau Private Bank, told Invest:. 

An article from Bank Innovation explains that banks are spending more than $100 million to replace their aging core systems. Advances in blockchain technology, IoT, fintech, online banking and robotics have helped many financial institutions improve efficiency and accessibility. 

The investment isn’t just to make banking easier now, it is also part of the future. Technology is an integral part of City National Bank’s five-year plan. “We will invest over $15 million in digital transformation for the organization. This will ensure that we continue to be innovative as well as impactful through improving our client experience,” President and CEO Jorge Gonzalez told Invest:.  

Many financial institutions are also partnering with financial technology (fintech) groups to improve their offerings. According to a 2017 report from multinational professional services network PwC, 82% of financial leaders expect to increase fintech partnerships in the next three to five years. 

Cybersecurity and fraud detection are other areas where technology is playing a key role. “When we invest in technology we are also investing in strengthening our cybersecurity,” Gonzalez stated. The investment is not just in the technology, but also in bringing in the right people who have the experience and talent to be able to instill their knowledge throughout the organization,” he said. 

In that regard, First American Bank recently created a senior-level position — information security officer — whose role is to train employees and allocate resources in preparation for possible cyberattacks. “Security threats are on the rise, forcing us to be mindful that our information can be compromised at any time. Through back-room investments and increased training, we are taking the necessary precautions to reduce risk by educating our employees as well as our customers,” Brian Hagan, Florida Market President for First American Bank, told Invest:. 

Although technology adoption can be a challenge for some financial institutions, especially smaller banks that do not have the financial capacity to keep up with the latest innovations, ultimately it can provide a cost-savings. “I think all of us as a banking community in Miami are saddled with compliance concerns. But I think that, with technology, those kinds of costs can be reduced gradually while still maintaining the kind of vigilance that we have to have. There’s a good opportunity for our industry here,” G. Frederick Reinhardt, Chairman and CEO of Brickell Bank, stated in an Interview with Invest:. 

To learn more about our interviewees, visit their websites:

Itau Private Bank: http://www.itauprivatebank.com/

City National Bank: https://www.citynationalcm.com/home/home 

First American Bank: https://www.firstambank.com/personalbanking/ 

Brickell Bank: https://brickellbankmiami.com/ 

PwC: https://www.pwc.com/ 

Bank Innovation: https://bankinnovation.net/ 

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