Loading
When times were good in commercial real estate, property owners weren't all that concerned about saving money. Now, naturally, they want to cut costs in any area that makes sense — and that has turned out to be good business for Rachel Elias Wein.
The former architect and development manager for the Sembler Co. now has her own firm, WeinPlus Real Estate Advisory Services, based in St. Petersburg — though she isn't likely to be found in her own office most days. She still works for Sembler and other companies in a consulting role, using their space when necessary and relying on cloud computing to store any important files.
Wein's approach to working with landlords and developers is maximizing the value of their properties, particularly shopping centers. Finding ways to spend less on projects, before or after they're finished, has become a priority in today's tough economy.
“It could be the only place where money is made in deals now,” says Wein, who has master's degrees in architecture and real estate from the University of Florida. She traded design skills for forensics after becoming a senior associate with Ernst & Young's construction and real estate advisory services in Philadelphia.
One of her clients, Tampa-based Forge Capital Partners, tapped her expertise late last year when Meres Town Center, a grocery-anchored retail project in Tarpon Springs, almost ground to a halt. The project's site contractor filed for Chapter 11 bankruptcy protection and stopped paying its subcontractors, putting the 55,000-square-foot center and a 20-year lease with Sweetbay Supermarkets in jeopardy.
Wein conducted a review and analysis of the project's documents, such as contracts, work orders and leases, and identified ways for Forge to cut losses, collect reimbursements and negotiate new contracts. She also supervised the hiring of a new contractor, paying close attention to any stipulations that would prevent further legal complications.
As a result, Wein saved and recovered more than $2 million on the $12-million development, including $250,000 in defrayed contractor costs, $1.3 million in reimbursements on an unfinished access road from the city and $500,000 in reimbursements from the anchor tenant. For her efforts, Forge paid her a 5% fee on the recovered money, somewhere around $100,000.
Not bad for someone who admittedly hit the wall on three prior career attempts over the last 10 years. Wein says a starting position with Tampa's Alfonso Architects helped her realize a different calling, but then she joined Ernst & Young in a cost-savings capacity at a time when developers were making so much they weren't all that interested.
At Sembler, she says her job was to find opportunities for new shopping centers, but “it was clear in 2008 that nobody would be building shopping centers for a while.”
Taking what she had already learned along the way, Wein set up an advisory addressing various aspects of commercial development, including construction, strategic analysis, due diligence, accounting, risk management, valuation, and broader business and management issues. In addition to Sembler and Forge, her clients include Equity One Inc., Woolbright Development and Publix Super Markets.
Working between landlords and tenants in lease negotiations doesn't create a conflict, she says, as long as both sides are able to sort out the most pertinent details. “It's almost serving in a mediation capacity,” she says.
Your free article limit has been reached this month.
Subscribe now for unlimited digital access to our award-winning business news.
Join thousands of executives who rely on us for insights spanning Tampa Bay to Naples.
