Spotlight On: Silvana Capaldi, Founding Chair, Alliance of Merger & Acquisition Advisors of Tampa Bay

Spotlight On: Silvana Capaldi, Founding Chair, Alliance of Merger & Acquisition Advisors of Tampa Bay

By: Max Crampton-Thomas

2 min read January 2020 — The long-term success of any economy is predicated on both organic growth and consistent M&A activity within the business community. Founding Chair of the Tampa Bay Chapter of the Alliance of Merger & Acquisition Advisors Silvana Capaldi believes the Tampa Bay Region is booming with new opportunities for business deals and the business experts she represents are there to help business owners and investors make the most of their businesses.

 

 

 

What is happening in the Tampa Bay Region market that makes it attractive for an advisory body such as the Alliance to decide to set up shop here?

 

According to the Census Bureau, Tampa Bay is one of the fastest-growing areas in the United States, which is great for our local businesses, businesses relocating here and startups. We have an enthusiastic entrepreneurial spirit and a very strong, engaged business community. Our support system and services for our young, innovative business startup space continues to grow. We want to see businesses thrive and our goal is to provide education and resources to business owners and business professionals.  Business owners are reluctant to attend events for fear of being bombarded with people selling to them. It is our mission to provide a venue where they can hear local business owners share their lessons learned and showcase the talent pool of experts in our community: investors, business leaders, organizations and mentors who are invested in Tampa Bay.  

 

Have you seen a significant uptick in M&A activity in the region?

 

With our favorable economic condition, availability of bank loans and private equity accessibility, we have seen an increase in M&A activity. For example, ConnectWise acquired companies and then sold to a private equity group, while PGT Innovations acquired NewSouth Window Solutions.  

We see companies looking for strategic growth through M&A. They may be looking to gain market share, expand talent pool, gain resources or eliminate competition.   

In addition, the benefactors of the M&A deal now have capital to reinvest. These business owners are experienced people feeding back into the entrepreneurial ecosystem, building companies that will one day sell again.

 

Where are you seeing the most demand for the services the Alliance provides?

 

The Alliance is both an educational and resource platform for business owners. We want business owners to have an understanding of the options they have, whether they are selling their business, passing the business to family or employees, or growing their business with an investor. So often we hear from business owners stating that they were unaware of options available to them when deciding to exit. We engage speakers with the business owner in mind. 

 

What is the value added by the professional services you offer in facilitating business deals?

 

There are so many moving parts in a business deal. We provide valuable resources and have a network of professional experts to work with the business owner to maximize valuation and expose them to the right opportunities.

 

Companies that have approached a transaction intermediary, hoping to sell their businesses, are often turned away for not being “market ready.” Those that go to market sell for a lower value. Then there are deals that fall apart when they get to the due diligence. I worked as a consultant for an insurance agency and the owner claimed he was 100% owner. Through the due diligence process, the client neglected to share that there were two family members who had ownership in the company.

 

Business owners often think that their business is worth more, only to be disappointed at the number after the valuation. That’s when a professional can come in and suggest adjustments that would increase the value. For example, the buyer may want to know what prospects are in the pipeline, projected future sales, reports or what CRM they are using.  Not having that information or tools can decrease the value of the company.

 

What is your view of the Tampa Bay Area market in the near term?

 

This is an exciting time for Tampa Bay. We will continue to attract businesses that want to relocate here,  and companies that are being formed. Business owners that have exited their businesses are reinvesting into companies. Our entrepreneurial ecosystem will continue to draw young innovators. The University of Tampa’s John P. Lowth Entrepreneurship Center, a partner of the Alliance, is committed to helping innovative startups gain traction, which equates to continually drawing and retaining entrepreneurs. Tampa Bay communities will continue to invest in an already exceptional entrepreneurial ecosystem, allowing Tampa Bay to become recognized as the place to invest.

 

To learn more about our interviewee, visit: 

https://www.amaaonline.com/tampa-bay-chapter/

 

 

Spotlight On: Stan Lifsey, Co-Owner, The Current Hotel

Spotlight On: Stan Lifsey, Co-Owner, The Current Hotel

By: Max Crampton-Thomas

2 min read January 2020 — In 2020, creating experiences and innovation are two of the main keys to success in the hospitality industry. Stan Lifsey, the co-owner of The Current Hotel, recognized this and used it to help develop one of the newest hotel offerings in the Tampa Bay region. After receiving an initial positive reception, Lifsey is looking to continue capitalizing on the momentum while also pushing the hotel’s innovative approach to hospitality as customer demands continue to change. 

 

 

 How are visitors and residents in the Tampa Bay community reacting to the newest addition to the hotel scene? 

 

We wanted to take advantage of our strategic location on the water, so all 180 rooms have a waterfront view. We also wanted to partner with the best local brands in Tampa Bay and feature them, along with other local artists, in our hotel. This hotel is a one of a kind product and in a one of a kind location. We have been open for a short while, but so far we are very happy with how we have been received by the local community and the visitor turnout to the hotel. The customer feedback from both locals and visitors has been extremely positive, especially regarding the unique brand and design we have brought to Tampa Bay. We built this hotel with the idea to break the mold and cookie-cutter box that the hospitality sector in this region seemed to be stuck in with regards to architecture, interior design and concept.

 

Do you believe the demand curve will support the multiple new hotels coming online this year in the region? 

 

I believe the demand curve will be able to support all the new hotel inventory coming online, but that is with a caveat. I’d be interested to see how many of the current deals actually end up being built because of rising construction costs. Construction costs are at an all-time high, construction labor is incredibly tight and land is expensive. We were fortunate enough to have built when we did, but this market is becoming increasingly challenging. It requires a lot of equity to get these deals done and built.

 

Having all this new supply of rooms in the market is providing positive momentum and growth to the Tampa Bay Region and certainly makes entities like Visit Tampa Bay and the Tampa Bay Sports Commission’s jobs a little easier. Being able to offer this type of innovative product that is coming online really speaks to the evolution of the Tampa Bay hospitality market. We have been an undervalued market for quite a while, but with all the free press that Tampa Bay is receiving thanks to massive development’s like Water Street Tampa, it is driving more people into the region, which increases the demand for more hotels. All of which is ultimately great for the economy of the entire region.

 

How have you seen the hospitality industry adapt to changing customer demands? 

 

The overall hospitality market is moving more toward unique guest experiences. Guests want a different vibe and experience whenever they visit a new hotel. This is where the hospitality market is going not only for leisure travelers but also for corporate travelers. The upfront cost may be more to developers and owners but on the back end, your rate and the desire of people wanting to frequent your hotel is much greater.

 

The idea when building this hotel was that we didn’t want to adapt to anything. We wanted to be  contrarian and blaze our own path. When we started this whole process, we had to engage a branding company and we went through about nine months of branding. Current was not just something that we landed on. The Current name is to do with the fact that we are on the water. It is also a nod to our wave ceiling inside the hotel lobby rotating art gallery and that we want to always be current and innovative in our approach. We always want our brand to shine through in everything we do, which ultimately benefits the customer experience.

 

To learn more about our interviewee, visit: 

https://www.marriott.com/hotels/travel/tparo-the-current-hotel-autograph-collection/

 

Spotlight On: Shaun Kwiatkowski, General Manager, The Godfrey Hotel and Cabanas Tampa

Spotlight On: Shaun Kwiatkowski, General Manager, The Godfrey Hotel and Cabanas Tampa

By: Max Crampton-Thomas

2 min read January 2020 — The hospitality industry in Tampa Bay welcomed several new hotel offerings into the marketplace in 2019, and 2020 is going to see the introduction of even more inventory. Invest: spoke to Shaun Kwiatkowski, the general manager of one of the newest offerings to the Tampa Bay region, The Godfrey Hotel and Cabanas Tampa.  Besides a bountiful 2019, Kwiatkowski also spoke about the importance and benefits of operating as an independent brand in a market that is saturated with corporate offerings, as well as his view on the impact of the sharing economy in the Bay. 

 

 

 

How would you describe The Godfrey’s performance in 2019? 

 

In 2019, we enjoyed the continued market penetration of our brand. We are still pretty new and usually the ramp-up period for a hotel brand in this market can take up to five years to really penetrate and become established, especially a new, independent hotel like The Godfrey. We do not have the Marriott or the Hilton behind us, so we have to rely on a lot of specific strategies to execute. We feel that we have been able to penetrate the market effectively in a short period of time. We have had a lot of growth, which we measure by ADR growth. We had almost double-digit ADR growth last year, which equates to RevPar growth in the hotel’s revenue results. We’re very thankful and proud that we have been able to grow that ADR a little bit faster than the market as a whole. When you look at the Tampa Bay market this past year, occupancy rates had stayed pretty much flat, but I believe that has a lot to do with the additional room supply coming into the market. 

 

How has operating as an independent brand been beneficial and a challenge to the hotel? 

 

Being an independent brand can create benefits, but there are also challenges to that. As the business and the industry have evolved, demand has changed and today, many people want something different from the corporate type of hotel. Not to take anything away from those brands, but people do want to have the unique and fun experience that an independent brand can provide, similar to our food and beverage experience in WTR Pool & Grill. That is exactly who we are. If we look at the market as a whole, we are starting to see some of those big-name brands evolve into a more independent style. We are seeing those independent, millennial-focused brands growing in popularity, especially in this area.

 

A big challenge for us across the industry is employee retention and finding the right talent. We drive employee retention through the culture that we create within the hotel. If we find a good employee, we reward them and we guide them through their career. When we are looking at recruiting people to fill our open positions, it is more about the person than their skills. I can teach you most of the skills to be a front desk agent or to be a server, but I can’t teach you to smile. I can’t teach you to be positive and warm. This means we always have to be in our recruiting mindset and look for those individuals who have the hospitality spirit.

 

How has the sharing economy impacted your business, if at all? 

 

In regards to the impact from the sharing economy and things like Airbnb, there’s enough room for everyone to play, from our perspective. The Godfrey has not seen a major impact from the sharing economy. If the average person does a normal search of Airbnbs in this region, there is not as large an inventory as you might find in Boston or Chicago. That being said, when we look at what Airbnb is doing and the future of their booking channel, that is something that’s on our radar. If there is an opportunity there that works for us, we are going to investigate it and see if there is enough return on investment to try and implement something similar.

 

To learn more about our interviewee, visit: 

https://www.godfreyhoteltampa.com/

 

Spotlight On: Alan Higbee, Managing Partner, Shutts & Bowen

Spotlight On: Alan Higbee, Managing Partner, Shutts & Bowen

By: Max Crampton-Thomas

2 min read January 2020 — Expertise on the local market is a must in the legal sector, especially within the competitive landscape of the Tampa Bay region. Understanding the nature of the business community within the region and the apparent challenges are keys to a successful practice. Shutts & Bowen law firm’s Managing Partner Alan Higbee discusses the benefits of having specialized practices in the Tampa Bay area, as well as how to deal with economic cycles and not lose talent in the process.

 

 

Why is Tampa Bay a good location for a firm such as Shutts & Bowen?

 

A full service firm like ours has experience in many areas, including some areas that are not necessarily customary for this market, such as our experience in international trade and transactions, experience with large industrial companies and experience representing large and small federal government contractors. Interestingly, the demand for these specialty practices is actually pretty high in this market. Such specialties have often been sourced from larger markets in the past. In our experience, businesses in this market are generally very happy to see that these specialty resources are available here to help and that they don’t have to look to other markets such as Washington, D.C., or New York.  For areas like federal government contractors, it makes sense to have that expertise here. I believe Florida is the third-largest market for federal contracting in the country and we are sitting outside the doors of MacDill Air Force Base, which has virtually every federal agency you can name, from all the defense agencies and divisions to the IRS. 

 

How does the firm take part in the business brought to the Tampa Bay Area by new companies and startups?

 

Startup businesses in the Tampa Bay area come in many varieties, but some of the most promising are often spinoffs: people who have had very successful careers in larger businesses and have decided to go out on their own. Many of these companies have a need for legal services in areas of high specialization, such as healthcare, technology and government contracting. We also see an awful lot of companies that are relocating some kind of division or business unit, or their entire U.S. operations, to this market and, candidly, besides being a pretty sophisticated business center, this area is also a pretty nice place to live.

 

In the market for legal services, we also see an increasing need for trusted advisers. Lots of lawyers can tell you what the law is, but very few have the industry and business experience to also tell you what you probably should do and should not do. Lawyers who have seen the good, the bad and the ugly in a particular industry or business segment and can tell clients, “we’ve seen this movie before and we know how it ends,” are extremely valuable to their clients and are in greater demand than ever before. 

 

What are the top challenges for the legal profession in the area?

 

The tightness of the labor pool is difficult, there is no question about that. It is certainly a major challenge for us. The other challenge is the general expansion of the needs of the market. We are becoming more sophisticated. When I moved here in 1980, the needs of this legal community were really pretty basic. In 2019, the businesses in this market are extremely sophisticated and that means their problems and issues are also very sophisticated. I think law firms generally need to consider developing or acquiring some of the specialty areas that are not necessarily indigenous to the Tampa Bay area. Acquiring such specialists can be hard. We have to go out and convince them that they will have enough work here.

 

How would a legal firm such as Shutts & Bowen deal with a potential economic downturn?

 

Things always happen in cycles. Like any business, we have to be prepared to handle those cycles. You have to position yourself to be adaptable and flexible, to learn to change what you are doing when necessary and to be able to pick up different kinds of work in the down cycle and be able to look outside your box to keep your talent busy. The down cycles are actually the best times to hire talent, because if your platform is doing well and you are able to find talent on other platforms that are doing well personally while their current platforms are struggling, you have a unique chance to capture that talent.

 

After every down cycle there is an up cycle. If you failed to keep your talent pool, and were not able to keep the collective resources and experience that you had, you start at a huge disadvantage when the market goes back up. On the other hand, if you are able to keep your talent pool intact through a down cycle, you generally have a huge advantage when the market recovers.

 

To learn more about our interviewee, visit: 

https://shutts.com/

 

Spotlight On: Andrew Burnett, Senior Principal, Stantec

Spotlight On: Andrew Burnett, Senior Principal, Stantec

By: Max Crampton-Thomas

2 min read January 2020 — The Broward County Convention Center and Hotel is one of the largest projects underway in Broward County. A project of this magnitude requires the utmost care in regards to design and architecture, as well as the foresight to plan for future environmental challenges. Invest: spoke with Andrew Burnett, the senior principal for Stantec, which is working on the Convention Center project. Burnett addressed the company’s ongoing projects, how shifting demands have changed its focus and the National Flood Insurance Program. 

 

What are some of your most significant projects in development within Broward County? 

 

We have multiple projects throughout Broward County, including the Fort Lauderdale region, Pompano Beach, Sunrise and Miramar. For instance, we are the architect of record and landscape architect for the Broward County Convention Center and Hotel, which is around a $1 billion project. This is an extremely large and involved project requiring integrated services from Stantec that also has many resilient aspects being built into it that we hope to use as a model for future growth and development throughout the county. As we are expanding the convention center and building the new hotel, we have done a series of wave-height analyses. These are not just focused on the floodplain and how high we need to build the building to stay out of the floodplain, they also address storm surges and how to design the building to be more resilient in those situations. It has been great to have the county’s support on these matters. Our other projects in Broward County include the new AC Hotel by Marriott in Sawgrass Mills, Manor Miramar, Las Olas Walk and 1380 South Ocean Boulevard. 

 

How have you seen demand shift in the last couple of years and how are you adapting to this shift? 

 

Historically, we would see the demand for smaller residential units in the Downtown urban core because of the density of the population. As we moved away from the urban areas, the units were constructed bigger to attract more people, but now we are starting to see smaller units becoming attractive away from the urban centers. This indicates that people are looking for alternative solutions that are more affordable. It may also be partially due to having more flexibility and adaptability in the way that we live and the way that we engage the community as Broward becomes more connected and dense. We foresee more of these deals for smaller units outside of the main urban areas making sense for investors. 

 

We are seeing more residential projects that want to permit themselves as or like a hotel. There is some gray area with the rise of services like Airbnb and WhyHotel that can allow owners to operate as a short-term rental while they’re leasing up their building. Owners and investors are starting to take advantage of this. This is shifting how we design our projects. For instance, if we need to design for things like ADA bathrooms, which you would find in a hotel, we are starting to look at an earlier stage how we might design the spaces to be more flexible to do this.

 

How have you seen Opportunity Zone legislation affect your business? 

 

We have seen an increase in requests for test fits on properties that fall in Opportunity Zones. The market is starting to ask questions on sites and locations that they hadn’t previously. There are a lot of regulations that are being finalized and released in the near future that are going to help increase investor confidence to go forward in these Opportunity Zones, but it may be too early to see the fruit of the test fits in these sites. We are expecting to see more of this in 2020. 

 

How much of a focus do you place on possible future changes to the National Flood Insurance Program? 

 

We are looking more broadly at what is happening with the National Flood Insurance Program and what may happen in the future in terms of how we go about flood insurance regarding how much of it is subsidized by taxpayers. At some point, taxpayers are going to say that they do not want to be subsidizing flood insurance for landowners who may not be doing enough to protect their buildings. As risk starts to shift from insurance entities to owners, they are going to be asked what they are doing to make their building more resilient. What we are trying to do with our integrated team is to find solutions to this so we can go back to our clients and suggest to them what they need to do to mitigate this risk. 

 

For more on our interviewee visit:

 

https://www.stantec.com/en

Spotlight On: Anddrikk Frazier, President & CEO, Integral Energy

Spotlight On: Anddrikk Frazier, President & CEO, Integral Energy

By: Max Crampton-Thomas

3 min read January 2020 — A growing economy in the Tampa Bay region equates to growth mode for most local businesses. One of the most important aspects of keeping this growth consistent is reducing costs in a smart and consistent manner. This can be achieved through an emphasis on reducing energy consumption. Full-service energy management companies like Brandon-based Integral Energy have recognized the opportunities in the market and have found demand for their multiple services throughout the Tampa Bay region. Invest: spoke with the president and CEO of Integral Energy, Anddrikk Frazier, about his business, demand for services and much more. 

 

 How is Tampa Bay a strategic location for your business operations? 

My first job was in the energy sector in Tampa and watching the growth in the region over the course of my lifetime is impressive. What separates Tampa from other cities across Florida are features like ports, airports and the ability to connect to anywhere in the Florida within three hours. 

Where have you seen the most demand among the variety of services you offer? 

Integral Energy is a full-service energy management company. We provide natural gas marketing services for commercial customers throughout the state of Florida. We also provide solutions for transportation companies as it relates to alternative fuels. Thirdly, our energy management division helps large businesses that consume large quantities of energy to understand their operating costs on a per plate or per widget basis and then we find ways to reduce those operational costs. I think the biggest demand for service comes from energy management requests and natural gas marketing. Many of our customers do not understand how energy costs are passed on, simply because that is not where the priority lies for hotels, convention centers and other large businesses. We have the ability to reduce energy costs without reducing the quality of their product, which is a huge bonus for them. That has been our biggest growth opportunity. 

A lot of demand comes from the private sector, mainly because public procurement processes can be intensive. We do get enquiries from the public sector, but most of the time they are looking for the cheapest price. Our value is based on return on investment, which does not always translate well to public sector work. In the private sector, there is greater understanding of the concept that each dollar spent now is an investment in future CAPEX reductions. We have had a lot of success in working with companies such as Saddle Creek Transportation and Waste Connections because we are able to explain to them the true cost they are saving with our services. 

How have the needs of your clients evolved over the last three to five years? 

We are the only minority-owned natural gas marketing company in the state of Florida, and this is what started our relationship with Waste Connections. But as we began to evaluate their business, the largest overhead was their employees. We had to find ways to work with them to increase service while keeping rates the same. Over the course of the last four years, we have saved Waste Connections around $2.5 million. 

On a local and national level, what emerging or continuing trends could have an impact on your business? 

There is so much development in the Tampa area, and with new residents come new commercial activity, which is part of our core business. As long as the economy is growing at this pace, we will have the opportunity to provide our services. Regulation is a big indicator for us, and one thing we are monitoring closely is the recent push for carbon footprint reduction. We all have to be mindful of environmental impact and, primarily in the private sector, the main goal is to save money. If we can provide ways to do this while also reducing their carbon footprint, these are the best business models for all parties. 

It is vital for everyone to work toward clean energy solutions. We take pride in being subject-matter experts and understanding what our customers need. CNG and liquid natural gas (LNG), while more environmentally friendly than traditional petroleum options, may not be suitable for all modes of transportation. There is room for electric and hydrogen technologies too, so we need to understand which technologies pair better with which fuel source and the impact that has on the environment. 

How is new technology impacting how companies develop and administer environmental energy solutions? 

The smaller the company, the lesser the disruption. Take a huge company that has made large investments in a particular technology. It takes a lot of momentum to make that company change course. Small businesses are nimbler and have the flexibility to try things out on a smaller scale before launching. On the metering side, we have AMR-AMI, which allows meter readings to be sent out electronically, meaning customers can understand energy usage on a daily or even hourly basis. There will only be greater focus placed on data collection and analysis going forward. 

 

To learn more about our interviewee, visit: 

http://www.integralenergyus.com/

 

Spotlight On: Vito S. Pantilione, President & CEO, Parke Bank

Spotlight On: Vito S. Pantilione, President & CEO, Parke Bank

By: Yolanda Rivas

2 min read anuary 2020 —  Parke Bank is expanding its lending business, including construction lending, from the South Jersey and Philadelphia areas to North Jersey and New York’s Brooklyn and the Bronx with its lending expertise. Parke Bank has a major Asian client base, which makes it important to keep a careful eye on the politics of the country toward China. Parke is also one of the few banks that provide banking services to the cannabis industry, which also requires careful monitoring of Washington’s ever changing position on the emerging cannabis business, says Vito Pantilione, president & CEO of Parke Bank, in an interview with Invest:.

 

 

What main changes have you observed in the banking and loan business in the South Jersey market?

 

We are in a great location to provide lending and banking services in New Jersey, and the Philadelphia area, in addition to expanding up into the Lehigh Valley area. Because of our growth, we’ve also grown our lending operation to North Jersey, Brooklyn and the Bronx.

 

The banking industry is always changing, I don’t think there is any other industry except maybe insurance where there are as many regulatory changes. There is also a lot more competition, even from nonbanking entities. We embrace competition because it makes you pay more attention and sharpen your pencil.

 

What services are most in demand for an institution like Parke Bank?

 

One of the services we’ve offered since we opened the bank is construction lending. It is a very attractive product, especially because many banks have discontinued this banking product. Even though the regulations for construction lending have become much more stringent, our structure allows us to handle it because we are well-capitalized and we have the experience and expertise. We find that our construction lending product is very attractive in the Philadelphia and South Jersey area and most recently in the Bronx and Brooklyn. We carefully entered the Bronx and Brooklyn markets and now have multiple multifamily projects and commercial loans in these areas.

 

How does the bank support the small business community in South Jersey?

 

We are very active in commercial lending, which includes small business lending. Some of our commercial lending is related to real estate as we have financed many investment properties. We also look at some of the South Jersey markets that need extra services, like startup companies and small companies that need to expand to remain competitive, where it is more difficult to get financing. We look at those sectors and try to establish loans and banking relationships to help support those markets. 

 

Small business lending is important to us. We are a Small Business Administration (SBA) lender, which allows us to provide funding for projects to small businesses that may not fit into the standard bank  financing. The SBA is a perfect vehicle to provide the needed credit enhancement to make those loans possible. That type of lending with small business banking also provides the opportunity for full service banking, bringing much needed deposits.

 

Are there any worries or challenges in the banking industry that Parke Bank is watching?

 

One area in which we’ve been very fortunate is our Asian business. I used to be president of a Chinese bank in Philadelphia, and when I opened this bank in 1999, I was fortunate that a lot of my clients and friends from the Asian bank followed us to Parke Bank. The current Chinese trade situation with the United States is a concern to me personally, which can reduce growth in the Asian market. As far as actual business, it has not really affected us that I can see. We are still getting new Asian customers and we have a branch right in the heart of Chinatown in Philadelphia, with a multilingual staff. We are very proud of that.

 

Another potential challenge is the Banking Secrecy Act, which is of major importance to us because we are one of the few banks in the country to provide banking services to the cannabis industry. We entered the market totally by accident because we had a major customer of the bank who received a permit to open a cannabis dispensary and asked us to finance the building. We loaned him millions of dollars over the years and it wasn’t until two years later that we realized what a major step that was for Parke Bank. At that time, we were one of the very few banks that was even banking cannabis. Now we have about 130 customers, and that is an industry where government regulations are having a big impact. We are very careful to follow the regulations that are in place, given there are really no clear regulations yet in place because it is not legal at the federal level. We are a state-chartered bank doing business with state-approved cannabis businesses. 

 

 

To learn more about our interviewee, visit:

Parke Bank: https://www.parkebank.com/ 

 

Spotlight On: William Reichel, President, Reichel Realty & Investments

Spotlight On: William Reichel, President, Reichel Realty & Investments

By: Max Crampton-Thomas 

2 min read December 2019 — The real estate market in Palm Beach County and South Florida is one that is marked with ebbs and flows, so it takes real market knowledge to be able to successfully navigate it. Invest: spoke with local market expert William Reichel, president of Reichel Realty & Investments, on all things related to commercial real estate in the county. He spoke of embracing the current regulatory environment as opposed to holding out hope it will change, his outlook for the real estate market and some significant emerging trends in the industry. 

 

 What challenges does Palm Beach County present in terms of the commercial real estate sector? 

Generally speaking, Palm Beach County is very pro-business, but it presents challenges as well for the commercial real estate sector. So much of business growth is dependent upon the process, and the ability to deal with the complexities, various codes and government agencies within the county and its 39 municipalities. 

I had a partner who would say, “It’s harder than it used to be, but it’s easier than it’s going to be.” That means it’s important to embrace the current regulatory environment rather than holding off in hopes it may change. We focus our 30-plus years of commercial real estate experience in this market on navigating the challenges for clients, which includes knowing which professionals to utilize in the approval process depending on where in the county the project is located. 

What do you predict for the next year in the real estate market? 

The real estate market in Palm Beach County will continue to grow, and I don’t see anything stopping it. While there will be ebbs and flows, there’s a lot of capital and tremendous wealth in the area that is driving the market. As a broker, we get paid when the transaction is completed, so we are incentivized to be engaged in the whole process, to make sure that it goes smoothly, is done properly and is as timely as possible. 

What emerging trends have you observed over the last year and how have these affected demand on the market? 

One of the large, emerging trends we‘ve seen in commercial real estate is shared office space, which has become a national phenomenon, and it’s growing here in Palm Beach County. Another trend we‘re seeing is growth of health- and fitness-related facilities that aren’t just gyms but also incorporate other modalities such as yoga, recovery, saunas and more. As the baby boomer generation gets older, they want a quality of health and fitness, which includes exercise as well as recovery. We’re seeing an influx of those types of prospects, which we believe is a terrific fit in this market, given the demographics with significant wealth, and who are willing to spend money on their health. 

To learn more about our interviewee, visit:

https://www.reichelrealty.com/

 

Spotlight On: Mike Schultz, President & CEO – West Florida Division, AdventHealth

Spotlight On: Mike Schultz, President & CEO – West Florida Division, AdventHealth

By: Max Crampton-Thomas

4 min read December 2019 — AdventHealth promotes a model of healthcare based on prevention and promotion of healthier lifestyles to help keep a lid on the rising costs of medical attention. The organization is also trying to make use of technology to make it easier for patients to access healthcare even from their cellphones and make educated decisions about their wellness, said President and CEO of the West Florida Division Michael Schultz.

 

What has been AdventHealth’s key focus over the last year?

 

We worked to rebrand our healthcare business, including a name change to AdventHealth. The change was focused on bringing a new definition to healthcare. Historically, providers have been in the business of fixing health, but our philosophy is to maintain health and prevent episodes that could have been avoided through a healthy lifestyle.

 

Along with our rebranding as AdventHealth, we introduced the tagline, “Feel Whole,” which clearly illustrates our intent to promote a healthier lifestyle. We have been successful in the Tampa Bay market with respect to building a solid brand. Our expansion and acquisition projects are geared toward better covering the expanse of growth in the Tampa Bay market. We have a variety of things going on, from projects being completed or in the process of starting. We have also added to our list of assets, acquiring a couple of hospitals in Dade City and Ocala. 

 

We are also looking into partnerships to bring healthcare to the home. I believe that is the way of the future for the delivery of healthcare because you can do so many things now with high-speed Wi-Fi that helps patients avoid unnecessary trips to the hospital to get diagnosed and treated.

 

Why has your organization decided to focus on preventative healthcare?

 

One of the key aspects of preventive healthcare is our model of never discharging a patient. Historically, hospitals wheel out their patients and wave goodbye to them. We have taken the stance that we don’t ever want to discharge a patient. A visit may end, but we connect with our patients before they leave any of our facilities and ask them if we can assist them through the next level of care. That may be a follow-up visit, a better dietary regimen or access to medication. We offer 95% of our 200,000-plus annual patients access to care navigation and a large percentage of our patients accept the offer. That is a way of making sure they don’t go home and start repeating the same actions that brought them to the hospital in the first place. This helps with maintaining health, reducing cost of healthcare and gets us in a space where we are directly connected to the patient. 

 

We have been intentional in making sure our consumers have a wide variety of access to different sites of service based on cost. This allows them to make the smart decision and not go to an emergency room for a simple cough that could be treated at a physician’s office or an Urgent Care Center. We want to be transparent about the cost of healthcare so that consumers can make educated decisions regarding their medical needs.

 

We also are careful about marketing our different levels of care. One of the biggest initiatives we have begun to promote is connecting to our consumers via the way people get connected today, through their smartphones. We offer an app that helps you understand where you should and should not go for cost-effective care. We are hoping that through these types of apps we can better educate people to make decisions based on their condition and financial resources.

 

What challenges emerge from providing healthcare to diverse demographics, younger and older populations?

 

In many markets in and around Tampa Bay we are seeing a more elderly population moving in. Retirees are starting to discover the beauty of Tampa Bay. But in general Tampa Bay is a fast-growing, diverse community and it is a large geographic area. The key to addressing the healthcare needs of the diverse demographics is to ensure close to home access points, and the ability to connect anytime, anywhere.

 

We also believe we need to make every effort to make healthcare more affordable. Perhaps the way of the future is to help change the reimbursement model.  Currently, you pay when you are sick; a health system is incentivized to provide services to get you well. What if we changed that? For example: a health system might get $10,000 a year regardless if you are well or sick. If you get sick, and it costs the health system $25,000 to take care of you, it loses money. If the Health System keeps you well, and able to keep medical costs at $5,000 because it was proactive in looking out for your wellness, the system makes money.  

 

If we are going to help solve the cost problem in healthcare, we are going to have to work on aligning incentives around health.

 

How is the organization coping with the challenges of recruiting new healthcare talent?

 

First, there is a nursing shortage. At any given time, we have around 800 open positions at our seven facilities in the greater Tampa Bay market. It is difficult, particularly in Tampa, to recruit nurses because the sector is growing and there are many providers. We have developed partnerships with a number of schools to ensure that their nursing students have an opportunity to rotate through our facilities. We also have a partnership with Lincoln Memorial University and opened a nursing school at the AdventHealth Tampa campus. We started late in 2017 and our first class graduated in 2018.

 

Regarding the physician population, we have determined that there will be a supply shortage in the very near future. In this area, too, we have partnerships with several schools to make sure their students can do their rotations through our facilities, so they get exposed to us during their education and perhaps be invited to come work with us.

 

To learn more about our interviewee, visit: 

https://www.adventhealth.com/

 

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