In this episode of Greater Texas, Sean conducts an interview with Casey Seeboth, a recent addition to the Bukowski Law Firm. They examine Casey's background, including his formative years in Milwaukee, his educational journey to law school, and his substantial experience at the Texas Department of Insurance. Casey offers valuable insights regarding his transition to private practice at Bukowski Law Firm, where he specializes in litigation and property law. The discussion also addresses the challenges and opportunities confronting Austin as it experiences growth, particularly in relation to environmental issues and infrastructure development.

This Greater Texas Podcast episode features a chat between host Sean Bukowski and Marino "Mo" Orlandi, VP of Commercial Real Estate at Harmony Bank Dallas,.  Mo discusses his transition into the banking sector from IT. He talks about the nuances of commercial real estate, the rising interest rates impacting the sector, and how Harmony Bank continues to selectively lend to small and mid-sized builders and investors. 

Takeaways

- Commercial real estate interactions primarily focus on small to medium-sized builders, developers, and investors.

- The importance of maintaining a selective lending approach that values client relationships and necessitates a deposit relationship with the bank.

- Current challenges in the real estate sector include rising interest rates that impact deal flows and lending practices.

- In view of challenges, banks like Harmony lean towards smaller, manageable projects and cautious towards retail and high-rise developments without solid financial grounding.

- Federal Reserve meetings and the political landscape could potentially influence future interest rates.

- Issues like insurance rates, recalibration of expectations among market players, and agility in changing economic conditions are paramount.

- Harmony Bank tends to be cautious with retail and office spaces due to rise of hybrid work trend, favoring industrial and multifamily projects.

- Texas' progressive real estate market growth is attributed to business-friendly policies and consistent influx of people & businesses.

- The need for adaptability, preparedness, and strategic planning is crucial in navigating the complex environment of commercial real estate.

- Despite challenges, there persists an optimistic outlook for new developments and opportunities in commercial real estate.

Sean Bukowski had a conversation with Blaine Cook, a commercial real estate broker from Dallas-Fort Worth. Blaine talks about how he originally entered into commercial real estate, shared insights about the current market, and discussed his role in transforming the Pilgrim's Pride land project. They talked about the challenges and opportunities in the area, such as the impact of rising interest rates and tighter lending standards and the repurposing of office spaces. How will the downtown Dallas's densification, the growth in the retail and industrial sectors, and the influence of AI and Big Data affect the future of commercial real estate? Tune in and find out.

Takeaways

• Why rising interest rates and tighter lending standards represent significant challenges, especially for smaller investors and developers.
• Creative repurposing of outdated office spaces is necessary to meet contemporary needs.
• Densification of downtown Dallas is driven by residential growth and commercial activities, transforming it into a vibrant center.
• Retail, industrial sectors and data centers are currently experiencing growth, with location significant for retail businesses, and online businesses strategically using storefronts to increase presence and sales.
• AI and Big Data hold potentially transformative impact on real estate, particularly for data centers and industrial spaces.

After sustaining injuries that led to a medical discharge from the military, Christian embarked on a nearly two-decade-long career in healthcare, starting from pharmaceutical sales to eventually pursuing an MBA at the University of Texas at McCombs School of Business on a full scholarship. A transition from healthcare to real estate investment, termed as "wealth care," was motivated by a desire to serve in a different capacity and the challenges of mounting tax liabilities. Starting with residential real estate in 2017 and quickly moving to commercial spaces, Christian showed a keen interest in leveraging commercial properties for forced appreciation, particularly in a time when COVID-19 has transformed workplace norms.

Takeaways

• Christian Catron's journey from humble beginnings to leading in real estate investment highlights resilience and adaptability.
• Christian leveraged commercial properties for forced appreciation amidst the changing workplace norms due to COVID-19. 
• His adaptation of commercial properties to meet evolving demands illustrates a strategic response to market trends post-COVID-19.
• Through Redeem Investments, he emphasizes on rejuvenating buildings to cater to local community needs like medical offices, hotels, and apartment buildings. 
• Redeem Investments exemplifies a forward-thinking approach to real estate investment, championing the adaptive reuse of commercial spaces.

Scott David Studzinski discusses his early career, transition to real estate, and current role as the head and principal of Cresa. He also talks about his investment company, Moon Tower Investments, and their shift towards LP investments. Scott provides insights into the current state of the office market in Austin, including opportunities in distressed assets. He shares his thoughts on the future of remote work and office space, as well as his positive outlook for Central Texas. Takeaways -Scott David Studzinski has had a diverse career, including working in the semiconductor industry, obtaining an MBA, and transitioning to real estate. -MoonTower Investments focuses on multi-family investments, but has recently shifted towards LP investments in various asset classes. -The office market in Austin is experiencing a flight to quality, with companies downsizing their footprints and a focus on well-located assets. -There are opportunities in distressed office assets, particularly in areas with high demand and desirable locations. -The future of remote work and office space is uncertain, but Austin's strong economy and growth potential make it an attractive market.

Ricardo Zavala, founder of Dove Springs Proud shares the dynamic changes in Dove Springs, Texas and how urban development and taxation impact inner city communities.  The episode highlights the importance of developer engagement with communities, discussing ways in which builders can work alongside residents to enhance inner cities like Dove Springs for the benefit of all.

Joel Gross, CEO of the Austin Monitor, offers a front-and-center look into Austin’s increasing need for community news. With a nonprofit model, Joel is helping sustain the information landscape within a city rapidly growing into a metro region. Joel’s first mission is to make community news more accessible so that locals can stay informed and engaged, having a voice in the decisions made where they live.  

Timecoded Guide: 

[5:02] Mission of the Austin Monitor 

[7:14] Sustaining a nonprofit news model 

[10:26] Access to local news 

[14:05] Future of the media landscape 

[16:34] Big issues in Austin 

[22:33] Austin monitor’s role in the community 

What do you see as the mission of the Austin monitor? 

The Austin Monitor has a broad mission but with two main facets: informing and engaging the community. Joel says that, with this, comes a prosperous community when it is made stronger by people feeling more connected. Importantly, people gain a sense of agency with community news when they have more of a voice and can go from being informed to being engaged.  

“That dynamic of becoming aware, understanding, following, and taking action—That's what we believe is a throughline to a strong, civically healthy community.” 

The new nonprofit news model  

As newspapers have fallen to the wayside and community news has given way to broader outlets, community news has needed a new business model to thrive again. Fortunately, the nonprofit news model also makes information accessible, removing paywalls in the process. Joel says that this was the first vision of the Austin Monitor. He says that while the highly competitive media landscape has largely dissolved local news, the nonprofit media model is proving to be a sustainable solution.  

“We want to do it for all so what they're doing at the state level, you're doing that at the local level. And I think we're starting to see that happen in cities across the country” 

What do you see as the current big issues in Austin? 

Austin is experiencing an acceleration of population and economic growth. Yet the city itself remains designed for a certain population size. The core issues that are normally present in a city, Joel says, reach a boiling point when the city cannot keep up with the growth. Through elections, big changes, and new developments, being informed and engaged in the community is more important than ever: which leads to a healthier community. 

“What we want is people to feel like they are involved in that change, that they can add their voice, that change that they are being able to shape the community that they want to be in, that they want their kids and grandkids to be in.” 

How does having access to local news make for a healthy community? 

Joel says that there should not be an inequitable barrier to access the information needed to make decisions within a local community. The current information about a local community informs what the trajectory will look like for months and years ahead. Importantly, the Austin Monitor has informed many local leaders and those involved with the local government. The next step, Joel says, is to reach a more general audience, the rest of those living and working in Austin.  

“Right now we're trying to get what we call that next level of audience—the people that are curious about what's going on in the city but may not know where to begin.” 

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Links: 

Keep up with Joel on LinkedIn. 

Visit the Austin Monitor. 

If you enjoyed this podcast, check out more episodes on Audible, iHeart, and Youtube.  

Learn more about the Bukowski Law Firm and the Greater Texas Podcast on our website and Youtube channel.

Sean and Glenn catch up on exciting things happening in Austin and the unique challenges stemming from the city’s recent growth. Glenn is the Director for Business Development at Broaddus Construction and also hosts the BoomATX podcast. Glenn shares his take on accommodating Austin’s growth and how the city should heed the influence of people like Elon Musk. To Glenn, most of it comes down to supply and demand: the question is if Austin can allow companies to provide the supply.  

Timecoded Guide: 

[00:00] Start of episode 

[10:18] Housing Prices in Austin 

[14:05] Elon Musk in Austin 

[16:09] The “Company Town” 

[21:36] The Future of Housing in Austin 

[25:24] The Robin Hood Recapture 

Is Elon Musk making a positive development in this market?  

Glen thinks that Musk has already positively contributed to Austin’s development. With his speed to the market in Tesla’s manufacturing and plans to expedite downtown Austin transportation infrastructure, Glen thinks that the city should continue to allow Musk to build and develop in and around Austin.  

“We should be encouraging it and allowing him to do it. For some reason, the city and public entities are all for all options until it's not their option.” 

What do you see as the future of housing in Austin?  

Glenn says that, as developers have no incentive to discount their costs, they can provide as much housing as the city allows but can only sell at the market rate. Meanwhile, there is no shortage of people moving to Austin, Glenn says that Austin simply needs more housing of all types. The challenge in meeting the demand and providing more supply are things like zoning, permitting, and city approvals, Glenn says.  

“What has been able to get approved and zoned and under construction is such a long runway that's built into the limited supply we have, and, like I said, there’s just no shortage of people wanting to move to Austin.” 

What are your thoughts on the Robin Hood Recapture?  

The Robin Hood Recapture Law is a Texas House bill that aims to recapture excess local property tax from wealthier school districts and supply other school districts with funds needed to reach state entitlement. Glenn says that a lot of money collected from property taxes in wealthier districts does not go back into education. He says that while it may not be easy, Robin Hood Recapture is the simplest way to address affordability in Austin.  

“We're paying two times as much to educate our kids in Austin, that we're getting services going out for the local area, that's a good chunk of money, that doesn't put more money into the pool to fund education across the state.” 

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Links: 

Keep up with Glenn on LinkedIn.  

Tune in to the BoomATX podcast.  

Visit Broaddus Construction at their website.  

If you enjoyed this podcast, check out more episodes on Audible, iHeart, and Youtube.  

Learn more about the Bukowski Law Firm and the Greater Texas Podcast on our website and Youtube channel. 

Pearlstone CEO Robert Lee talks on the ever-growing population rise in Austin while addressing issues such as rising housing costs and whether or not subsidized housing should be a main focus moving forward in the city. Having grown a family business, worked in multiple companies, and lived in dense cities, Robert brings a lot to the table in terms of hashing out how to fulfill Austin’s housing needs and accommodate the city’s growth. 

Timecoded Guide:

[00:00] Start of episode

[05:54] Affordable housing

[11:34] Fixing housing market issues

[14:08] Keeping up with demand

[20:37] Growth of housing costs

[26:45] Austin’s rapid population growth

Affordable Housing in Austin

Robert speaks on how housing real estate is different from any other type of real estate. Housing is a fundamental need, Robert says, that this form of real estate addresses. He says that he’s worried about the current environment in Austin not being able to meet the need for affordable housing in the city. 

“We came into this market short, we're going to come out of this market shorter, there will be a day of reckoning, and we're not going to be ready.”

Robert starts out by saying that one step his business has taken in the housing landscape is changing the way they refer to housing. Pearlstone uses the term “attainable” to describe housing that might typically be called “affordable” to avoid the assumption that “affordable” always means a subsidized product. By focusing on upper-scale workforce housing, Pearlstone was able to reach a demand in Austin and believes that, moving forward, density will be essential in filling more housing. 

“As a producer, I do not believe that unless the market rate units are involved, that we're going to be able to get there on just subsidized housing. I think that's been proven.”

Robert says that, with the current demand, it will be impossible to meet the need for attainable housing with only subsidized housing. Spreading that cost for every unit means that the average price goes higher and that many working people will not be able to afford housing. Overall, Robert says that Pearlston’s mission has always been to bring the most attainable market rate prices. 

“Every subsidize unit that we have to do on our building means I have to spread that cost to the other units—which raises the cost to the average Joe. And so there are first-year doctors first-year lawyers, professors—usually younger ones—less-established, that are having serious difficulty finding housing where they need to be. “

Difficulties in developing

While Robert mentions the efforts for equity in housing, he says that the reality of business puts up a lot of barriers to affordable housing through rules and regulations. He says that the city has a vibrant future ahead, but must focus on having an “any and all” approach to development in which housing is broadly provided for the city’s population at large instead of narrowed down. 

“When you do a development, you're not king of the world, you can't just do something on your own, you have to do it with partners, lending partners, and finance partners, construction partners.”

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Links:

Keep up with Robert on LinkedIn.

Visit the Pearlstone website. 

If you enjoyed this podcast, check out more episodes on Audible, iHeart, and Youtube. 

Learn more about the Bukowski Law Firm and the Greater Texas Podcast on our website and Youtube channel.

Walter Moreau, Executive Director of Foundation Communities, brings the increasingly relevant topic of homelessness and housing in Austin to the pod. After 25 years in this Executive Director role, Walter has seen the housing situation of Austin change from thriving to barely surviving. As rent skyrockets and supply cannot keep up with demand, Walter and his team at Foundation Communities aim to utilize hotels and other existing architecture to make affordable housing more accessible to Austinians citywide.

Timecoded Guide:

[00:00] Podcast begins - Repurposing Hotels as a Homelessness Solution

[01:23] Finding passion for nonprofit housing support & services

[06:54] Foundation Communities’ mission for housing, services, & nonprofit programs

[11:04] Understanding different causes of homelessness when addressing housing

[17:44] Central Austin affordable housing & the issues of urban rent hike

[22:29] Inspiring the tech world to get involved in housing & homelessness support

Why don't you tell us a little bit about Foundation Communities and its mission?

Originally founded in the 1980s, Foundation Communities has focused on housing and services in Austin since the very beginning. Walter explains that it’s one thing to just provide cheap apartments, and another thing entirely to support a community in need of housing, resources, education, and care. Now, with 26 communities under their care, Foundation Communities strives to expand further and encourage affordable housing investments. 

“We describe ourselves not just as housing, but housing and services. We're not interested in just a cheap apartment. We want to provide where it makes sense. The education programs, health programs, financial programs, they're right outside your doorstep.”

Is the goal to help your residents eventually move out of Foundation Communities, or are you building projects for long-term residents?

Unlike certain community services for homeless individuals, Foundation Communities doesn’t have an expiration date or a time limit on their offerings. There are a myriad of reasons why someone might be homeless, such as losing their job, developing an addiction, suffering from a health problem, or experiencing the loss of a loved one. Walter acknowledges that some families might only need a short stay in an affordable housing unit, but others might need Foundation Communities for life— and that’s completely okay. 

“Our tagline is to create housing where families succeed, and success is different. For some families, that may be exiting homelessness. Success is to boost their income, have a stable place to live. Most likely, they're going to rent for many years, but there's no time limit.”

Are the projects Foundation Communities works on nearer to the city center, or are you having to go farther out for project locations? 

Not only is getting proper funding a problem for affordable housing in Austin, Foundation Communities also has to get creative with housing locations, such as local churches and closed hotels. Central city locations are especially vital, Walter explains, because of connectivity to medical services and transportation. Residents need to be able to work, live, survive, and thrive in an affordable housing environment to support themselves and their families. 

“We want to build as central as we can because there's better connectivity for services and transportation. In order to build centrally, we're going to have to get creative and find different kinds of partnerships [with other organizations].”

Developers complain about how long it takes to get projects built in Austin and how expensive it is. Does Foundation Communities run into those issues also? 

Walter is thankful for Austin City Hall’s support of affordable housing, which helps Foundation Communities cut through some of the red tape associated with housing projects within the city. However, where the time, cost, and lack of resources becomes apparent is when Walter compares Austin to other cities and other countries facing massive homelessness issues. There is still a huge gap in areas needing to be served, Walter explains, and the United States needs to pay attention to how much cities like Austin are still struggling to house their residents. 

“The group that's not as committed and involved is tech. Google, Amazon, Facebook, Apple. They're having an outsized impact on our demand for housing, driving up costs. Affordable housing is a crisis in Austin. There's a need for the tech community to step it up.” 

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Keep up with Walter Moreau on LinkedIn and the Foundation Communities website

Learn about Foundation Communities on LinkedIn and the Foundation Communities website

If you enjoyed this podcast, check out more episodes on Audible, iHeart, and Youtube

Learn more about the Bukowski Law Firm and the Greater Texas podcast on our website and Youtube channel