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Impact

The power of design.

August 21, 2019

Christine Mondor describes herself as an eternal optimist regarding the power of design in shaping sustainable cities. And that’s what she has been working on for the past 15 years. She is using the power of design as an architect, educator and activist to shape places, processes and organizations nationally and internationally.

As a principal of the architecture firm evolveEA, Christine brings creative solutions to projects like the award-winning Millvale EcoDistrict Pivot Plan every day. She has taught architecture, landscape design and sustainability concepts at Carnegie Mellon and Slippery Rock universities, and at Chatham College. And she is deeply involved with organizations that promote design and the environment.

Currently she serves as chair of the Pittsburgh Planning Commission and she is a former president of the Green Building Alliance, a member of the Global Ecodistricts Protocol Advisory Committee, the Penn State University Stuckeman School advisory board, and former chair of the Design Center of Pittsburgh. Christine received her Bachelor of Architecture degree from Carnegie Mellon University and studied architecture and sustainable design in Scandinavia. Christine is a registered architect and LEED Accredited Professional, and a 2019 American Institute of Architect Fellow.

Listen in to our fascinating conversation about the power of design and the shifting role of architecture in this age of environmental challenges, and you’ll believe too.

Insights and Inspirations

  • Christine likes what Jane Jacobs had to say – “Cities have the capability of providing something for everybody, only because, and only when, they are created by everybody.”
  • She’s intrigued by the concept of naturally occurring affordable housing.
  • She thinks that co-operative or fractional ownership models have legs.

Information and Links

  • Christine loves Party with a Purpose and she’s working on two parties. The first is in partnership with Eco Districts and is a nationwide network for communities to create inclusive and integrated communities. The second is the 10th global EcoDistrict Summit to be convened in Pittsburgh in November, 2019.
  • Christine loves community based efforts and the use of citizen science to transform places such as the Breathe Easy project completed in Millvale.
  • Christine’s favorite brownfield rebirth is Malmo, Sweden’s Western Harbor. She really enjoyed walking through the amazing neighborhood that has been created and artfully weaves water into public spaces. 
Read the podcast transcript here

Eve Picker: Hey, everyone, this is Eve Picker, and if you listen to this podcast series, you’re going to learn how to make some change. Thanks so much for joining me today for the latest episode of Impact Real Estate Investing. My guest today is Christine Mondor, a neighbor of mine in Pittsburgh and an architect with her own company, evolveEA.

Eve Picker: Evolve is leading the charge in sustainability in the architectural world in Pittsburgh. Christine believes in the power of design in shaping a sustainable environment. I’m fascinated at how much Christine focuses on designing or redesigning the infrastructure of cities. This is something that not even I, a fallen architect, expect. In this podcast, we talk about the rapidly shifting roles and responsibilities of architects for our rapidly changing environments.

Eve Picker: Be sure to go to Eve Picker.com to find out more about Christine on the show notes page for this episode and be sure to sign up for my newsletter so that you can access information about impact real estate investing and get the latest news about the exciting projects on my crowdfunding platform, Small Change.

Eve Picker: Hi, Christine. Thank you for joining me today. How are you?

Christine Mondor: I’m doing great. How are you, Eve?

Eve Picker: Good. Good. Good. I know you pretty well. I’ve known you for quite a few years now, but our audience probably doesn’t. You want to tell them a little bit about what you do?

Christine Mondor: My name’s Christine Mondor, and I am an architect. I have the pleasure of having that be both my vocation and my profession. I really love the field of architecture – buildings, and spaces, and communities, and environments. I also have a practice called the Evolve Environment Architecture, where I get to have that as my profession, and I do that for a living.

Christine Mondor: My firm, Evolve Environment Architecture, was started in 2004. I had a history of practicing in kind of post-industrial cities, or the city of Pittsburgh during some of its hardest times and really always thought that there was an upswing coming and specifically when that upswing is framed around sustainability, and triple-bottom-line equity, and environment, and economics.

Christine Mondor: I started my firm with my partner, Mark. We really framed it around sustainability. I think, when we started the firm, a lot of the work that we were doing, people thought might be temporary; might be a nice thing to do for a couple years in terms of sustainability. What we’ve found is that while we were out in front in the early years with regards to sustainability in our practice, the rest of the society kind of caught up. What was once an outlier became standard practice.

Eve Picker: Now, in the folks that we hire, the people that we work for, they’re always asking for what’s next? What’s more? What else can we be doing? It’s been a really great process since 2004, defining a field of practice, spreading the word about this field of practice and having people join us, as clients, and as communities, and as our colleagues. Now, it’s to the point where there’s just so many challenges to try and hit on that we definitely are glad that many others are walking here beside us.

Eve Picker: I love, in your bio, the first statement – that you’re an eternal optimist regarding the power of design in shaping a sustainable environment. I’d love to know more about that.

Christine Mondor: I used to have this phenomena where, in Pittsburgh … You know these places well, as well; you would walk around communities, and you might have a visitor with you from somewhere else, and you would be just enamored and in love with everything that you see. Somebody would say to you, “Why are you taking me around to this neighborhood? I don’t see anything here.”

Christine Mondor: You have this kind of gut check, where you realize that you’re looking, and you’re seeing a future condition; a condition where things are more environmentally sustainable, where the community is lifted up, so that all may prosper, and frankly, it just has really great, design as well. When you have these other people around, they’re not seeing that, so it’s your obligation to make that happen. When I realized that I had that kind of disjuncture in what I was seeing and maybe what others were seeing, that was my eternal optimism. People would say, “Well, you’re optimistic, aren’t you?” Yes, I am!

Eve Picker: I think it’s a great way to describe it. My husband always says that when I drag him into an old building and all he sees is pigeon shit and [cross talk] and I’m standing there saying, “This is beautiful!” He’s just perpetually stunned.

Christine Mondor: That’s exactly it. That’s exactly it. Yep [cross talk]

Eve Picker: That’s the lot of a designer, right? Just trying to find a way to show the rest of the world what’s possible. What are you working on at the moment?

Christine Mondor: We are doing a lot of … In our firm, we work at three different scales. We work at the macro, mezzo, and micro scale. The micro scale is we think about as kind of like building spaces. We’re working a lot with universities and commercial clients to make outstanding places, inspiring places, but that are also high-performing and really are thinking about future conditions.

Christine Mondor: We’re also working a lot with district-scale work, that mezzo scale – communities and neighborhoods, and also at the regional scale, and that’s infrastructure. That’s the part that I spend most of my time in, in really thinking about these things as systems. We’re doing work with- a lot of stormwater work. That is taking an infrastructure system that previously was below grade, in pipes, and thinking about it as a land-use question and how it can really add to a community.

Christine Mondor: I find it especially fascinating, because you have to think about it in terms of future-proofing. It’s not just a question of doing, say, green infrastructure to capture stormwater and prevent it from getting into the storm pipes and putting sewage out into our rivers and waterways. It’s really a question of how are we going to recreate how our communities work so that we can deal with this issue in an environmentally and equitable way – environmentally beneficial and equitable?

Christine Mondor: Also, so that we can begin to deal with the issues of climate change in this very dramatic way that we’re seeing it play out. Yesterday, here in the city, we had a morning rain that sent many communities into full flood mode and even closed off a regional hospital for a period of time. That is a fascinating question of infrastructure planning.

Christine Mondor: If we are really going to deal with those issues, we’re going to- our communities are going to be reshaped. It’s not just a little bioswale in somebody’s front yard. We’re talking about rethinking the systems that we designed 100 to 150 years ago. I find that work really fascinating. We’re doing that work around stormwater and transit.

Eve Picker: Be sure to go to Eve Picker.com and sign up for my free educational newsletter about impact real estate investing. You’ll be among the first to hear about new projects you can invest in. That’s Eve Picker.com. Thanks so much.

Eve Picker: So, at the moment, I feel like I’m living in Kevin Costner’s Waterworld. It’s a little crazy. Maybe we can all learn something from that. When you talk about this, I realize that most people think about architects probably in a completely different way; that they’re busy designing single-family homes and office buildings. You’re talking about sort of redesigning the infrastructure for cities and neighborhoods. I don’t think people realize that’s what architects do.

Christine Mondor: Yes. I don’t think so either. I don’t think, sometimes, architects understand that that’s what they can do. Maybe it’s because we haven’t had the need to do that for the past 50-100 years. We’ve been kind of living off the legacy of that original infrastructure, and land-use work. But things like climate change and also economic conditions are changing in a way that forces us to rethink the development patterns that we have; whether it’s the availability of mortgages for single-family houses, the failure of shopping malls, and rethinking distribution patterns for retail. All those things caused pretty significant changes in our cities and our rural regions, too. Architects, we’re really well-suited to think about that on a qualitative way and a quantitative way [cross talk] superhero power.

Eve Picker: Yeah, no, I think that’s right. I always think of architecture as a really interesting profession that teaches you how to make something out of nothing – the process of designing something from absolutely nothing in a very creative way. I think it’s pretty rare skill. I wonder, do you think the profession, on the whole, is thinking the way you’re thinking?

Christine Mondor: I don’t think so. I think that some are … One of the things I always enjoy about your trajectory, Eve, is that you’re able to weave these disparate things together, whether it’s a development pattern, a housing type, a specific project, or a funding mechanism. You’re always pulling these things together to say what is it that we want to do as a community and then how do we make the tools work for us?

Christine Mondor: I think that our architectural training is, at the base of that, being able to see across these different disciplines and expertises. I think there’s a unique need for that now, so that the folks in the profession are waking up to that – that, in fact, our most useful role might be outside of what we consider traditional practice. I recently became an AIA fellow, and in the process of that, you kind of have to redefine how your practice has added to the profession. It helped me realize how we define ourselves as professionals is only scratching the surface of what the potential contribution we can make.

Christine Mondor: I know we were talking about the role of women. We talked about that in the past and how it’s hard to find women in the profession, or in the elevated, or recognized positions. I think that’s because they tend to- are oftentimes in non-traditional roles. The more we expand the definition of the profession, the more we’re going to find that those women are out there, and they’re in influential positions, but they’re just not in traditional positions of power.

Eve Picker: You’re still teaching at Carnegie Mellon, right?

Christine Mondor: Right.

Eve Picker: I taught there quite a few years ago now, and I was frustrated with the … For different reasons, I was frustrated with the very traditional approach to teaching these unbelievably talented kids architecture, because there are so few jobs in that profession, as well. Do you think that schools are sort of starting to see that they need to shift what the role of an architect might be in this really- in this world where sustainability has become so important?

Christine Mondor: I think that’s a great question, and I think that that shift is happening. It has to happen at two levels. First, the profession has to be ready to catch it, and to say is the goal of our professional education to graduate a narrow definition of what it means to be an architect, or can we broaden out and embrace a full spectrum, where everybody shines a different light on a topic, and in that, we see that all the colors kind of arrive?

Christine Mondor: I think the traditional way of approaching architectural education was that everybody shines the same color of light on the subject, so we are trying to make that light as uniform as possible. That’s the standards for that education. But when I look at what my students are doing up out of graduation that see a view that they’re doing things that I don’t even know what to call the job. You know, I don’t know what it is yet. And they don’t know what it is yet. But I don’t want them to be outside of my profession. I want to say that that is also architecture. It’s a different piece of architecture.

Eve Picker: I think you’re right. I think there’s an opportunity there that we’re kind of missing at school. I actually want to go back, because I know you did this little EcoDistrict PIVOT plan for Millvale, which is a Rust Belt town outside Pittsburgh. It’s kind of an unusual plan to do for a place like Millvale. I wanted to give our listeners an idea of what you did for Millvale, so they have a more concrete idea of what is possible.

Christine Mondor: Some of the work that we do in systems … Sometimes, we’re working directly with, say, a sewer authority here in Pittsburgh. We’ve done big planning with Buffalo Sewer Authority. Sometimes, we’re working with transit authorities. Those are people who hold infrastructure systems and plan that system, but communities are different; where they have many different types of infrastructure woven into the fabric – the social and cultural fabric – of what people think of as their community, their home, and their neighborhood.

Christine Mondor: EcoDistricts, in the way that we co-developed it, actually, with our colleagues in Millvale and with our colleagues in Larimar, another community here in Pittsburgh, is really looking at those larger systems and understanding how these smaller neighborhoods, communities, boroughs interface and weave themselves into it.

Christine Mondor: For instance, in Millvale, in the PIVOT plan, the PIVOT plan looked at, at first, three different areas. It looked at food, water and energy, and said how do we make our community better, more equitable, more healthy by looking at these systems and the resources, and flows that move through those systems? That’s what resulted in a plan in 2014 with a number of different things to do for the community. They did them in about two years and [cross talk]

Eve Picker: That’s very fast. That’s really fast.

Christine Mondor: I have to say that no … These plans- no plan really works unless a community’s ready to activate around them. Really, we had great community partners and worked hard, through the process, to build their supportive groups around them, so that the community had capacity to do this work. It doesn’t work to make a great plan unless they have the capacity to actually execute it, and they did, so we-

Eve Picker: What did they do in those first two years?

Christine Mondor: The first few years were … I’ll give you a for instance in energy. We looked across the entire municipality to say where is energy being used in the community? Where is it being lost? Where is it being gained? That’s anything from looking at building performance, to possibilities for renewable energy, to how those things weave into the daily life of communities.

Christine Mondor: One of the proposals was saying you’ve got a couple places here in town that you could do an energy hub, where you’re harvesting solar energy. It’s feeding into a particular function that services the community or a business. You can kind of punch above your weight, because you’re thinking outside of a single property, and you’re looking at more district-scale work. These energy hubs became resiliency hubs. The community was able to get funding to put a solar-resiliency hub in their municipal building, because, tragically, they have frequent flooding. In the case of that, this municipal building served that, in, perhaps, in some cases, off-line, off-the-grid hub, but it’s prepared to be the place where people can go for flooding.

Christine Mondor: They also did that in places called the food hub. The food hub is a place where there are a couple businesses being incubated around food-oriented businesses – whether it’s a caterer, or a startup, but also an organization called 412 Food Rescue, whose home is in the Moose; an old Moose Lodge that became the food hub. That is where 412 Food Rescue gathers waste product, waste food, from other businesses and places where somebody’s ordered too much food. They can capture that and re-use it, re-purpose it, put it back out there and really close loops within the community and within the region.

Christine Mondor: Attracting a business like that; having a facility that’s sustainably designed, and high-performance, and really creating a culture around these big idea comes from this type of EcoDistrict planning that says we’re bigger than a project. We’re really looking at resource flows, and we want to make some great design moves and really improve the quality of our places in the process.

Eve Picker: They did all of that, and what was next?

Christine Mondor: Food, water, and energy were first. With that success, they felt air quality and mobility were two things that were important, as well as the concept of equity. Equity was an underlying theme through everything, but bringing it to the forefront, elevating it to its own category forced everybody to really look hard at what these goals meant and how they were quantitatively, and qualitatively serving the community.

Christine Mondor: I think probably the one that’s got the most depth to date, so far, is air quality, because they were able to get additional funding to understand the nature of the exposure of the community to poor air quality, both regionally and localized sources. We did citizen science and monitoring around the community to understand where the bigger issues were, and then to, “try to fix” some of the problems and decrease exposure to the community, but also to try and raise awareness. Because what we found, in fact, through this citizen science, is that although there are minor variations … For instance, the homes that are near to the woods, but right above the fast-food place that fries burgers and sends its exhaust out, they had the worst air quality.

Eve Picker: Interesting.

Christine Mondor: Yeah, we would have thought the houses near the highway had the worst, but [cross talk] I know, but we didn’t check weight to know if smelling burgers frying also encouraged you to eat, so I’m not sure about that. But that was an interesting finding that it’s locally variable for those reasons. What we found is that most of the- all of the stations, in fact, tracked to the regional. We are exposed to things that are coming from Ohio, things that are coming from coal-fired power plants, and then the intermittent releases that happen from our local air emitters. That is an advocacy issue. There’s nothing that somebody in that community could do to stop that directly, if they want to live outside and walk around, but it is something that, if they know it, they can try to change it through policy and through advocacy.

Eve Picker: Interesting. Interesting. I’m going to just change course a little bit and ask you if there are any current trends in real estate development that interest you the most at the moment?

Christine Mondor: This is a great conversation to have with you, because I know your ear is always to the rail on these things. The two things that I’m really intrigued by, they could be related, but I’m not going to try to relate them here. First of all, I’m interested in the concept of naturally occurring affordable housing, because this seems to be the nexus of the strain that we feel, when we talk about gentrification, or changing markets, and displacement. At least in our region, this concept of naturally occurring affordable housing was a fairly common phenomena that we didn’t recognize.

Eve Picker: Can you explain that to the listeners? I don’t know if everyone knows what that is? What is naturally occurring affordable housing? What does that mean?

Christine Mondor: In a weak market, a weak real estate market – like, say, Pittsburgh was, say, the ’90s especially,  more uniformly weak – naturally occurring affordable housing meant that you never really had to look hard to find affordable housing. It also means that the housing is under-invested in, in a way that it doesn’t sustain the basic maintenance requirements of the house.

Christine Mondor: When I cut my teeth in the profession, what affordable housing meant in Pittsburgh was putting people who were above the average median income into communities that had very low median incomes, because there weren’t enough people who … There was no income diversity, and there weren’t people who could necessarily care for the infrastructure that existed, because there wasn’t enough economic resource in that community.

Christine Mondor: As a market pivots from weak to strong, the more commonly held narrative that we have now is trying to prevent displacement, because that naturally occurring affordable housing disappears. Then folks who had been living there, don’t have as many options. I think we need to have a broader conversation about the pros of naturally occurring affordable housing, recognizing places that have it, but also recognizing that it comes with its own set of problems that need to be addressed for that housing to be equitable, to maintain a quality that is equitable. In some communities, code enforcement is targeted at naturally occurring affordable housing, because, rightfully so, the conditions are not ideal to raise a child in, or to live in, but the investment that’s required to fix that place then prices somebody out of that unit, or it just doesn’t get done.

Eve Picker: Okay.

Christine Mondor: We need to understand what the extent of it is. We need to understand what our tolerance of it is and how we make sure that people are living in healthy and affordable places.

Eve Picker: This is an interesting concept, because there probably is a lot of naturally occurring affordable housing left in Pittsburgh, but the anger from people who are currently being displaced is really around the fact that it’s no longer in their own neighborhood, right? Those neighborhoods have been improved now.

Christine Mondor: Right. What is the balance that we have between the market doing improvements, between subsidizing improvements to make sure that people have choices and aren’t forced to leave? It’s oftentimes terms like gentrification are used to kind of flatten an argument. When you flatten an argument, you can’t get to the nuance that allows you to make sure you’re turning the right dial to [cross talk] solve a problem.

Eve Picker: I totally agree with you, and I think there are lots of dials to turn. Just that the idea that as neighborhood gains value, your property taxes go up with it is a peculiar idea to me. I just really think that people who live in that neighborhood should enjoy the increased value around them, but not be forced to leave because of that adjustment. I think there are lots of pieces to it, for sure.

Christine Mondor: That gets to the second thing that is of interest to me, in terms of that kind of real estate thing. That gets to the idea of ownership, because one of the reasons why people experience it unequally is access to investment, access to properties that don’t have tangled titles, access to financial mechanisms to purchase, and ownership. That means that some folks who do have access to that are better prepared to take advantage of a shifting market, whereas others are not.

Christine Mondor: I know that home ownership isn’t for everybody. What are other models we have, where people can have a stake in their neighborhood and be landed, if you will, and have that idea of stability, but not be burdened by responsibilities that they either don’t have the resources, whether that be time, or money, or interests to take care of? That is a cooperative model. It’s something that I’m very intrigued by, and I don’t see widespread adoption of. I don’t know why that is, but I’m very, very curious about that [cross talk]

Eve Picker: Have you seen anyone use that model in an interesting way?

Christine Mondor: You know, I think that there are examples of it outside of our region, here in Pittsburgh, and I have spoken with some experts who say there are some here in the region. I haven’t. I don’t have enough firsthand experience to know what the reality of the success of those things are yet. But it’s definitely something that I’m going to be looking into more so-

Eve Picker: Interesting. Interesting. We agree that socially responsible real estate is important. What do you think we need to think about generally to build better places for everyone?

Christine Mondor: I’m a big fan of the Jane Jacobs quote … I’m going to paraphrase it here. Cities are best whenever they’re … Cities serve everyone best, when they’re built by everyone. I think that thinking about cities as an equitable real estate opportunity is a powerful tool, because we know that capital thinks of cities as a means of making money.

Christine Mondor: It shouldn’t be that you’re on one side or the other. It should be that we’re thinking about how this mechanism we have can serve a broader purpose in a broader market – whether that’s helping folks who wouldn’t otherwise understand our built environment as a wonderful place to be, but also a place to develop stability and security because of the investment mechanisms that they might have available to them, or whether it’s thinking about their piece within a broader opportunity.

Christine Mondor: I think that your Small Change tool is really a part of that story that’s being written, where people can participate in this in different ways, because there’s just not enough flexibility in how people participate in making a city; to make sure they don’t just have an opinion on how something looks, but also how something works, and that they have a stake in it, in the long term.

Eve Picker: Yeah, I think you and I have seen how important that is in Pittsburgh, right? Yeah. What community engagement tools have you seen that you think really work well? That’s always the most- one of the very difficult things, I think, personally.

Christine Mondor: Yeah, I agree. In order for engagement to be transformational, it needs to be long term, and it needs to be repeated. The EcoDistrict model that we did in Millvale and with other communities really depends … I think it sets up a model of, first of all, giving people information, because they need information, and they need to be given decision points that are meaningful and not just decision points that check a box for participation.

Christine Mondor: Secondly, they need to have tools that are suited for their participation, meaning not just how you’re asking a question at a meeting, or how you’re engaging them in a volunteer activity, or outside activity, but also this idea of how they become invested in their community financially,  through time, through effort. It can’t just be a meeting, and then everybody goes home to their house. It has to be an ongoing effort to build that community.

Christine Mondor: I think that happens with a process that says we’re going to take some time; we’re going to figure out who’s in the room; we’re going to figure out who needs to be in the room. We’re going to have the vision, and then we’re going to take these multiple steps and let many voices determine how it is we’re going to get there.

Eve Picker: Yes. Okay. I think my final question is where do you think the future of real estate impact investing lies?

Christine Mondor: I’m not sure how qualified I am to say that on the broadest scale.

Eve Picker: I was actually going to say you probably just answered that, because what I’m hearing from you is that you really believe the community should be invested in themselves and in their own future, and that’s impact, right?

Christine Mondor: I worry about the aggregation of capital in large-scale investment, and whether that’s … Not something that we see here in Pittsburgh, as much, but in other cities, where investors have come in and bought up large amounts of single-family homes. What you’d get is an aggregation of capital and power, and you prevent people from participating in their community in a way that is meaningful.

Christine Mondor: Not to say that that everybody wants to be that single-family home longer, but in many communities, it’s becoming less and less possible. I think, here in Pittsburgh, our challenge might be otherwise in that we need to figure out how to … As our market is shifting, we need to figure out how we allow people to invest in projects and in places that are beyond their scale of engagement. A single investor can’t do it. Is it a community investor? Is it co-housing? Is it a co-operative? Is it an investment tool, like Small Change? To write a more different narrative than just a large-scale global capital that is making so much change in cities across [cross talk]

Eve Picker: No, I do agree, but I think what you’re grappling with is what I learned early on as a developer, and that is control of property is absolute power. The question is can you somehow shift control of property to a larger group of people? Not-

Christine Mondor: Yeah.

Eve Picker: -and that’s a really difficult question. I mean, control of property is powerful for a whole bunch of reasons, financial reasons, and other reasons, so it’s a really big question. I have three sign-off questions and I ask everyone [cross talk] I’m going to ask you, too. What is a key factor that makes a project impactful for you?

Christine Mondor: I think that, out of an impactful project, there is a high quality of design and improvement of the physical place, but there’s also a sense of empowerment that comes out of it for all who have participated, whether they just helped shape it with their opinion, or whether they invested, or whether they performed some of the work. That empowerment is what builds community. That’s what I think is the most impactful.

Eve Picker: Okay. Other than by raising money … You know what we do at Small Change, so you know that we can involve investors, so that they can invest and make money just like everyone else. Is there any other benefit of crowdfunding that you see that might benefit communities or impact real estate developers at large? Honestly, one of them … I’m going to answer you on one of them. I know that you head up the planning commission, here locally. I always think about, if someone came to the planning commission with a project that had a local crowd of investors invested in it, what would the planning commission think about that?

Christine Mondor: It’s an interesting thing, because tools we have to influence development, are sometimes regulatory, and they’re sometimes financial, and they’re sometimes kind of cultural, or social norms. I think that the planning commission has some regulatory tools that have … But it also reflects- some of those criterion reflect broader social norms and some of these other influences.

Christine Mondor: I would love to see the projects that come in with creative design that are led by teams that have empowered communities and have a strong financial working model. Having a great triple bottom line is a great way. Go into it with that, and if you fall short of some things, that’s okay, but have some big goal. It really makes for an amazing process and project. I would love for every project that we see in our city to have that type of effort. I think we’re still blessed, here in Pittsburgh, because we have a number of locally owned properties. We’re not as subject to global capital as other cities are, at least at the time, so we still have some of that ethos, where we’re doing [cross talk] the common good.

Eve Picker: The final question, which is a really hard one, what is the one thing that you think would improve real estate development in the U.S. that you would change?

Christine Mondor: I think that much of it is opaque to people who don’t have time to really sort through the complexities of it. I’m not sure that this is the entire system change that’s needed, but some part of it needs to change to allow transparency, whether that understanding how big deals happen and what effect it has on a city and the community, or whether that understanding how one can participate in it to their own benefit, but also for a common benefit. I think if those things were more clear and transparent, we’d probably have more equitable participation.

Eve Picker: That’s a great answer. I’m going to thank you very much for joining us. I really enjoyed it. I’m going to go check out the Millvale Eco plan, right now. It sounds really [cross talk] I haven’t paid enough attention to it. Thank you very much, Christine. It was really nice chatting with you.

Christine Mondor: It’s been great chatting with you, too, Eve.

Eve Picker: That was Christine Mondor, founder of EvolveEA. Here are some of my takeaways from our chat today. I learned that architects, and Christine in particular, are going far beyond just designing buildings. They are designing infrastructure and PIVOT plans for entire towns and neighborhoods. I heard the passion behind Christine’s conviction that high-quality design can reshape the future for cities. And I heard about her conviction that the housing models of the future need to be cooperative, providing access to ownership for everyone.

Eve Picker: You can find out more about impact real estate investing and access the show notes for today’s episode at my website, EvePicker.com. While you’re there, sign up for my newsletter to find out more about how to make money in real estate while building better cities. Thank you so much for spending your time with me today, and thank you, Christine, for sharing your thoughts. We’ll talk again soon, but for now, this is Eve Picker signing off to go make some change.

Image courtesy of evolve EA

The democratization of finance.

August 19, 2019

Throughout history finance has been the province of emperors and kings. Later it included the merchant classes and the new aristocracy born of the Industrial Revolution. Your average Joe only really got involved in investing during the stock craze of the 1920s. Even today the average investor holds assets in a small subset of classes – primarily stocks, mutual funds, and bonds. If Joe wanted to acquire real estate assets, she was relegated to a mortgage on her home, or her residential rental properties, or publicly-traded real estate service firms like the Simon Group, AvalonBay Communities, and others.

While all those asset classes have value and the potential to generate returns, the ability to invest in other real estate classes without a massive pile of capital has been limited until recently. In the early 2010s other real estate asset classes like commercial, shopping centers and retail became available to the average Joe as a result of the 2011 Entrepreneur Access to Capital Act.

The Entrepreneur Access to Capital Act gave a much wider pool of investors the ability to participate in crowdfunded investments. It did this by providing a crowdfunding exemption from SEC (U.S. Securities and Exchange Commission) regulations, as long as a company raised a maximum of one to two million dollars, the amount set at the time the bill was signed. Under the Entrepreneur Access to Capital Act, anyone could invest up to $10,000 or 10% of their annual income, whichever was lower.

Opening up markets to new investors

When markets open to firms, economic growth tends to follow. A great example of this is the surge in investment capital and growth in China after they gained Most Favored Trading Status in late 2001. China went from third-rate to one of the most dominant economic powers within just a few decades. While not entirely analogous, the democratization of finance could follow a similar trajectory, providing great economic benefit to a much larger pool of real estate investors and the communities in which they choose to deploy capital.

Rather than well-heeled and institutional investors sucking up profits by virtue of being the only ones allowed to play the game, now individual investors can take advantage of commercial real estate opportunities. This includes investing in a wide array of property types, such as multifamily apartment buildings, self-storage facilities, retail and shopping centers. Real estate projects with capital requirements that are out of the reach of most individual accredited investors are now within reach thanks to equity crowdfunding. 

Impact investing and the democratization of finance

One of the most exciting possibilities that the democratization of finance brings, is its possible marriage to socially responsible impact investing. Historically, the type of person who is interested in high-finance has not typically been particularly socially responsible. We can see that through industry’s past opposition to things we take for granted, like the weekend, child labor laws, safety standards, and a whole host of other protections. That is not to say that all investors or capitalists are bad people – just that they are laser-focused on profit, often to the detriment of society at large.

As many new investors enter the scene, bring different attitudes to ethical investing with them, this focus on profit may take a backseat to sustainable, community-led development projects. Impact investing does not need to mean sacrificing returns or investing in unprofitable projects – it is simply a market mechanism for affecting change while also generating a return on your investment.

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As we’ve seen throughout history, large concentrations of power are not good, regardless of whether that power is financial, political, social etc. The democratization of finance has the potential to avoid or even alleviate many of the corruptive and detrimental effects of the finance system- by spreading ownership and wealth amongst the crowd instead of amongst just a few, and by shifting investment focus to impact investing with the end result of creating better places for everyone.

Image by MTAPhotos, Hudson Yards Real Estate Development Update: April 16, 2015, CC-BY-2.0, image cropped.

Is revitalization a dirty word?

August 16, 2019

Revitalization, gentrification, and displacement are now a mainstay in the heated national conversation about housing. For many years urban renewal and revival were sold as cure-alls for improving economically vulnerable neighborhoods in big cities from New York to Oakland. Unfortunately, the effort to bring new life to these areas was more successful than anyone predicted. In fact, it was so successful that it began to drive low and middle-income residents out of their homes as property values and the desirability of each neighborhood grew. And in the process revitalization went from a hopeful phrase to a coded word for displacement of minority and low-income residents.

This process started in the early 1990s in some high cost of living areas like San Francisco and Seattle and has substantially ramped up during the current real estate boom. Much of the issues arise from the Gen-X and millennial preference for smaller homes and their desire to have immediate access to urban life rather than schlepping in from the suburbs. As these young people flock to urban areas, existing residents are unable to keep up with rising rents, property taxes, and the general increase in expenses as their neighborhoods gentrify.

A silver lining

It is clear that gentrification is negatively affecting many Americans, with those most affected coming from low-income and minority groups. Some critics make no distinction between unmanaged market-driven gentrification, and the revitalization efforts happening in cities across the country. These revitalization efforts are having real, positive effects in some rust-belt states which are seeing incredible turnarounds, at least partially as a result of real estate revitalization.

Detroit as a model?

Detroit was, and continues to be, the poster-child for urban decay in America. The hollowing out of the American manufacturing base led to a situation where middle and upper-middle class residents fled to the suburbs, taking their tax dollars with them. Left behind were the poorest, many of whom came from minority communities. The city lurched from year to year in a state of disrepair until a few years after the 2008 financial crisis.

Over the past decade, real estate investors have helped develop millions of square feet of prime real estate in downtown Detroit. Areas that were once in significant decline, bordering on a demilitarized zone, became livable once again- and property values and the city’s economic picture rose with the real estate sector.

The housing market in Detroit is incredibly large and complex, and there are success stories as well as the emergence of some of the more common issues with gentrification and displacement. Many of the people on the ground working to protect residents from the deleterious effects work in partnerships with local governments, nonprofits- and developers.

Riding the wave

Spider-Man once said, “With great power, comes great responsibility.” This truism can be applied to how we approach housing issues such as sustainability and affordability. When local stakeholders are not heeded, projects can have disastrous consequences- both from an investor and resident perspective. Many grassroots movements have sprung up across the country as a response to development growth, and what some locals see as the destruction of their communities.

As developers and investors, we have a surefire way to avoid conflict with locals- and that is to  build to benefit the community, rather than just to make a buck. Everyone has to eat, and there is nothing wrong with an honest buck- but finding the intersection between community-minded morals and market forces will help each party benefit- the developer, investors, and residents.

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Revitalization does not have to be a dirty word. In fact, it can be a net positive for all parties when implemented correctly.  Many cities and states throughout the country are taking steps to mitigate some of the worst problems arising from gentrification- and insightful investors have the chance to be on the ground floor of an entirely new development model- one where community and business interests are aligned, rather than at odds.

Image by Eve Picker

Lead by example.

August 14, 2019

Jonathan Tate leads by example. I met Jonathan through my crowdfunding platform Small Change, where he raised funds for several of his project in New Orleans. With his New Orleans architectural practice, Jonathan focuses on architecture, planning and odd opportunities such as what to do with odd-shaped lots that no-one knows what to do with. I find that immensely appealing and so do lots of others. Jonathan has received awards and press ranging from Curbed to Fast Company. He’s a rising star.

Jonathan is a graduate of Auburn University, where he was a multi-year participant in the Rural Studio, and Harvard University Graduate School of Design. He has been recognized by Emerging Voices 2017 of the Architectural League of New York.

Together, on this podcast, Eve and Jonathan geek out a little on odd buildings, odd lots, odd clients, crowdfunding and the role of creativity in building better cities.

Insights and Inspirations

  • Lead by example.
  • Dig in to non-formulaic, non-cookie-cutter solutions.
  • Odd-shaped and forgotten lots can lead to a new genre of housing.
  • A homeless person can build a house with the right set of drawings.
  • Equity crowdfunding could equalize a neighborhood around development.

Information and Links

  • Jonathan owns an architectural studio called Office of Jonathan Tate
  • He’s building Starter Homes Two, an affordable housing project that he raised money for from a crowd of people on Small Change.
  • He designed and is developing 1476 Magazine Street an artist owned bed and breakfast co-operative in New Orleans.

Read the podcast transcript here

Eve Picker: Hey, everyone, this is Eve Picker, and if you listen to this podcast series, you’re going to learn how to make some change. Thanks so much for joining us on this podcast. I’m Eve Picker, and my life revolves around cities, real estate, and crowdfunding. In this podcast series, we’ll be digging deep to discover how we can build better cities by building better buildings.

Eve Picker: Jonathan Tate is my guest today. I met Jonathan through my crowdfunding platform, Small Change, where he’s listed a couple of his projects in New Orleans. Jonathan’s architectural practice focuses on architecture, planning, and odd opportunities, such as what to do with odd-shaped lots that no one knows what to do with in New Orleans. I find that immensely appealing, and so do lots of other people.

Eve Picker: Jonathan has received awards, and press, ranging from Curbed to Fast Company. He’s a rising star. If you want to know more about Jonathan, after you’ve listened to this podcast, please visit EvePicker.com, where you’ll find links, and other goodies on the show notes page, and where you can subscribe to my newsletter on all things real-estate impact.

Eve Picker: Jonathan, what’s your background, and what path led you to where you are today, with your practice in New Orleans?

Jonathan Tate: Well, first, I want to say thank you for having me on, and it’s good to talk to you today. Let’s see if I can answer the question in terms of background.

Jonathan Tate: I don’t know how far to go back, but it might help just to say that I just started off, actually, in architecture in what I would say is a world-class practice, but a very conventional practice. We were located in Memphis, Tennessee. Then, in 2005, after Katrina in New Orleans, we relocated to the city. Roughly speaking, it was more like 2008, for me, to move down here.

Jonathan Tate: Through that process, and then, additionally, with the recession, and then, additionally, I was teaching at the time, it just … I don’t know. That’s sort of the origins of how our practice became our practice is what I’d say. At least those are some of the pieces that all added up to our multifaceted focus as an office.

Jonathan Tate: The lineage being exposure to New Orleans, in a recovery standpoint; trying to assist in that recovery, but also in academia, where research, and engagement in topics that were sort of extra-architecture, in a way, all led to the establishment of our practice, today, which tries to focus both on architecture – making buildings – but also, all the other things surrounding what it takes to put together a building, or a city, or [inaudible]. That’s kind of where we came from.

Eve Picker: What prompted you to move to New Orleans? I know we had Katrina, but why move your office there? What were you hoping that would accomplish?

Jonathan Tate: Well, the thing is, we were … Memphis is close, but really far away at the same time. We were in a state with a practice, where we were busy … Again, it’s ’05, and it’s rolled into ’06-’07; we were busy, but not that busy, and we were trying to re-calibrate, and stand up a little bit, just to drive in … Anyway, focus on things that we cared more about, and less about just staying busy.

Jonathan Tate: Then comes Katrina, and we just wanted to help. There’s a kinship with the city. We were both along the river. We spent- A lot of us in the office had sort of grown up coming down here. We really got wrapped up in what was happening, and wanted to help, basically.

Jonathan Tate: We were invited by a number of different people to speculate on what we thought the future of the city was. Again, we were doing this from afar, and an opportunity arose for my partner at the time to be able to move down to New Orleans, and do a sort of visiting-teaching position at the university here, Tulane.

Jonathan Tate: That was kind of our segue to making a decision just to move everything down. We, through this process, recognized that there was only so much we could do in this environment. being, again, away in another city. I haven’t had a chance to kind of be on the ground, and see if we could really have an impact. That was important to us. We were able to act on that; then, eventually, we moved the … He came down, and eventually, we decided to move the entire office down.

Eve Picker: Has it played out that way? Do you think the work that you’re doing intersects with impact, and socially responsible work in New Orleans? How do you think you’re, in your little practice, helping the city?

Jonathan Tate: Well, yeah, actually I do believe that it does, but in different ways is what I’d say. I wouldn’t say it’s more nuanced; it’s just that we don’t … It’s not always … Frankly, it’s over 10 years, now; the city’s kind of passed the recovery mode. Forgive me for saying, but there’s still things that need to be resolved that were consequences of the storm.

Jonathan Tate: What I would say, more importantly, and back to the original question, is there’s an ethos about how you engage in urbanization in the city, and how an architect can participate in that discussion, and contribute. That ethos is what’s really in the office, whether what we’re doing specifically relates to recovery, or whatever.

Jonathan Tate: It’s, I’d say, more the spirit of that, and being here at that time, shortly after the storm, and just seeing the energy in the architectural, and planning community, and how there was a lot of ideas, and vitality, and just a real commitment to try to make this place survive, and be greater than it was.

Jonathan Tate: That spirit … Again, sorry for using these terms, but I’d say that spirit sort of has infused the office in a lot of ways, and it’s still – as a lot of people in New Orleans connect, and resonate on that level – but we’re- it’s definitely a part of, and been embodied in our office, for sure.

Eve Picker: Be sure to go to EvePicker.com, and sign up for my free educational newsletter about impact real-estate investing. You’ll be among the first to hear about new projects you can invest in. That’s EvePicker.com. Thanks so much.

Eve Picker: Do you want to just tell us quickly about a couple of projects that you think kind of embody impactful real-estate projects that you’re working on? I know about them, but our listeners don’t, so I’m hoping you’ll explain a couple of things you’re working on.

Jonathan Tate: Sure, sure. There’s actually two- a couple of projects, and I should say, as an office, we had plenty of, like, “Here, we just do work for people,” and I love all the work that we do for people, and I love all our clients. It’s fantastic.

Jonathan Tate: Running parallel to that, we have projects that are self-starters, let’s say; projects that we initiated, either through partnerships with people, or on our own. Those are the ones that I generally talk about, when we’re having this kind of conversation. I’ll sort of start it there.

Jonathan Tate: The one would certainly be our housing program, which we’ve dubbed the Starter Home*, with an asterisk, which is a infill … You  mentioned in your intro, it’s an infill-housing-development agenda, if you will; a strategy, a Project sort of with a capital P.

Jonathan Tate: What we’ve done was formulate a position about a need for a particular type of housing in New Orleans, and this is topical, by the way. I think, as we framed it, it’s applicable in any city in the US, or at least from an American context, I think it’s applicable anywhere.

Jonathan Tate: In effect, we were looking for housing opportunities that were leveraging what we saw as unrealized property, or land in urban, or strictly city environments; then trying to locate, and design housing on these sites that were focused on either first-time home buyers, or last-time home buyers, or anywhere really in between.

Jonathan Tate: The idea about the housing was is that it’s sort of right-sized. It’s resisting the sort of bloat that we’re seeing in the housing industry, in general, and, as a consequence, was driving down some of the costs of the housing. It’s by no means affordable, but it’s certainly mid-market housing.

Jonathan Tate: In that, we’re trying to interject design, and offer to the speculative buyer what we think is all the contemporary work, versus most speculative housing you’re going to see; A tend, or a trend towards traditionalist, at least in single-family housing.

Jonathan Tate: That one- that project, again, the Starter Home* project is something we’re really proud of, and that we worked on for the last year … It’s gone on five years now, basically, and we’ve managed to build  … I think collectively we’re at our 16th home. The last ones were ones that we ran through Small Change. It was the first project that we worked with you on there.

Jonathan Tate: Along the way, we’ve done a number of different houses. One that I’m starting to kind of look back on, and think of, more deeply, anyways, is a project that we categorized under Starter Home*, but it was something that we did for an individual, who was formerly homeless. He had purchased himself a small lot; basically one of these little remnant parcels that … I think, in total, it was about 800 square feet of land. I forget the exact number, but it’s small.

Jonathan Tate: We, with his help, designed a home for him. It’s basically a micro house. It was, at the time, the smallest; I think it still is the smallest permitted home in the city of New Orleans. It was under 200 square feet.

Jonathan Tate: We did it in a way that he could self-build it. We sort of helped him with the construction; we created a set of documents that were permittable, but also something that he could actually go out, and build by it. We helped him in that process, and with pulling that together.

Jonathan Tate: Now, weirdly enough, we don’t promote it a lot, but it’s one that has a lot of meaning for us, and it’s getting a little bit of traction here in the city, just with people that are interested in looking at other housing; other ways to provide housing for people that aren’t just building homes; it may be  looking at a micro home, and looking at, again, these small parcels. That one’s really interesting. Again, it’s under that framework of the starter housing. I can keep going. There’s another project that we’re- or I can stop there.

Eve Picker: No, no, no, go ahead. One more project.

Jonathan Tate: Yeah. The other one I’d say is another project that has been hosted on the Small Change site, and another self-initiated project. It’s actually, at least in theory, again, that we’ve come up with an idea, and then formulated a building around the idea.

Jonathan Tate: The idea being a cooperatively owned B&B that … Basically a hotel, or a small hotel, in this case, where the operations are provided by the co-operative. The co-operative is made up of artists, and other creative individuals that need time to do their work, but don’t often have that time, because they’re too busy making money at a job, basically..

Jonathan Tate: The thought being is that we would create a co-operative. The co-operative would do the operations for the hotel, and then,  in return for your work at the hotel, you actually get room and board.

Jonathan Tate: Then, depending on how much you decided to work in the hotel, the theory goes that you work one day a week – you may work a little bit more; you may work less – but the rest of that time, because you’re not worried about where you have to live, or where you’re going to get your next meal, you’re able to focus on, and concentrate on your work.

Jonathan Tate: That one’s underway now, the one here, but we’ve already done one in Clarksdale, Mississippi. That one’s up, and operational, and it’s sort of our model that we’re translating down here. Those are two projects that I think that-

Eve Picker: Obviously, you think socially responsible real estate is necessary. Do you see any current trends that interest you the most, that might propel that type of real estate further [cross talk] Maybe another question I want to ask you, also, or maybe this one comes first is, in your practice, now, which do you prefer? Do you prefer doing these self-starter projects, or working for your client?

Jonathan Tate: That’s a good question. I’d rather answer that one, rather than the trend. I’m terrible at trends [cross talk] all I get asked is … I’m no good at predicting that, I should say. In terms of  working with things, the truth is that I go back and forth. It depends on what day of the week, or what process, or phase that it’s in.

Jonathan Tate: I think what I enjoy most is that they both exist simultaneously, because it’s … Again, it can be a headache sometimes. I really do enjoy working with clients, and other people, and helping them with their vision, and I also really enjoy, and appreciate the opportunity to kind of make some pivotal, and essential decisions around the things that we do. It’s not that I would say I prefer one or the other. What I prefer is that they both exist.

Eve Picker: Right. Okay, I’m going to retract the trend question, and I’m going to ask you if there’s any anything in the world of real estate that you’ll particularly interested in that’s new that you’re following? Let’s not call it a trend.

Jonathan Tate: What we are moving in to, and what we’re trying to think about more … There’s nothing new about this, in some ways; it’s just I’m not sure that people have been critical about it, in certain ways. It’s all this mid-rise housing, and the typology around multifamily housing …

Jonathan Tate: It’s what we would sort of colloquially call a four-over-two, or a three-over-one, or whatever, but where you have a base that’s not constructed non-combustible, which means it could be retail; it could be parking; it could be whatever. On top of that, you’ve got the obligatory three-four floors of housing that sit on top of it, which is the kind of building block of what we’re seeing here in cities, now, and have, historically.

Jonathan Tate: It is also, in our mind, leading to the homogenization of urban environments, because it’s become formulaic. It’s what we’re really digging into now, and again, this isn’t a trend; this isn’t necessarily anything new. It’s just we’re starting to question what that is, and how we can engage in that conversation, and maybe turn it a little bit, and see if there’s a way to make a richer- or get a richer project out of it.

Eve Picker: I think the other question I had is do you think there are some trends, and I know you don’t like that word, in real-estate development that are really important for the future of our cities?

Jonathan Tate: In my world … It’s funny; this is a question, again, it’s hard for me to really answer in some ways, because, believe it or not, and I often say this, I don’t see myself as a developer, at least not by definition.

Jonathan Tate: What I mean by that is we’re not really set up as a development practice, per se. We do development, but we’re not organized around development as a business model. Consequently, weirdly enough, I don’t really follow development as much. I don’t pay attention to it probably the way that I should but …

Jonathan Tate: That’s not to say we don’t interact with it in interesting ways. Obviously, we’ve got clients that are developers, aside from ourselves … There’s things that are floating around now that … Actually, honestly, a lot of people come to us to talk about, or a fair amount of people come to us with interest in, and want to discuss crowdfunding, the world that you’re in. It certainly has a lot of interest, and I think people are trying to figure out how to utilize that as a tool.

Jonathan Tate: Lately, Opportunity Zone seems to be the thing that everyone wants to hear about. Those are financial trends, and what people are starting to focus on. I think your earlier question about any sort of social-minded real-estate development … In our world, we don’t see- you see a little bit of it, but you don’t see a lot of it, and it certainly doesn’t feel like a trend, unfortunately [cross talk]

Eve Picker: If you think about it, crowdfunding is fast – raising equity through a crowd, but co-working has had a meteoric rise, where people share office space, and share amenities, because it’s flexible, and it allows them to move around; it allows them not to put down a lot of money on a space they may not need. The same is going to happen with housing, right? We’re seeing [cross talk] housing, and we’re seeing all sorts of new versions of living, and working together that didn’t exist maybe 10 years ago.

Jonathan Tate: Something we’re starting to get … On that same track, something that we’ve started to engage with a little bit, in a couple of different cities now, is the role of the food market as an incubator, and a jumping-off point for restaurant entrepreneurs. That’s a whole ‘nother model that seems to be proliferating wherever we go these days.

Jonathan Tate: That’s right. I think, for me, what’s interesting about that is that it allows places that don’t have much activity, or that someone may not go to, to open an office, because it’s a neighborhood that they’re not sure about, but it allows that neighborhood to kind of gather people who are doing things. That may begin invigoration of that neighborhood.

Eve Picker: If a nonprofit opens a co-working space, they’re able to offer space to small businesses in the neighborhood, and they really have nowhere else to go, now, all of a sudden, you have some sort of expression of what’s actually happening in the neighborhood. That’s really interesting, I think [cross talk]

Jonathan Tate: Yeah, I totally agree, and we’re certainly seeing that. I guess what I like about it, in addition to what you’ve described already, is the forefront of revitalization of a portion of a city, or at least that’s one component of it.

Jonathan Tate: It also involves, often, non-developer types that are working towards these goals. I think by the time these kind of ideas make their way up, and they become, again, formulaic in some ways, that’s when developers feel like it’s safe to take it on, and implement different-.

Eve Picker: That’s right, and that’s why bankers feel it’s safe to take it on..

Jonathan Tate: That’s right.

Eve Picker: We’re sort of stuck in this circle of traditional financial institutions not wanting to fund the things that will eventually make the places we live better. Someone has to kick that off, right? That’s you, with your odd lots, or me, with my crowdfunding.

Eve Picker: There have to be those early starters, which I think brings me to my next question – how can we improve on that? It is so hard, as you know, to do those little startup projects, and they really don’t provide much financial return. Clearly, we like doing them because they provide us some other sort of satisfaction. How can we get better at incubating those sorts of ideas for cities?

Jonathan Tate: I think, one, you have to lead by example, in a lot of ways, and that’s certainly what we were trying to do. We had no … With the housing in particular, there’s no expectation that we were going to build thousands of units of housing, which we certainly need, like most cities [inaudible] help with a lot of issues, just availability, but also affordability. There’s that.

Jonathan Tate: I think providing some evidence that this is a thing that one can do … Then you see the adaptation of that, and the adoption of that, and how it can sort of roll through … When I fortunately find myself in these kind of conversations, a lot, are people that are interested in it, that just need some encouragement, and some support.

Jonathan Tate: That said, as a way to make sure this continues to happen, or at least facilitate this happening, I think creating networks, collaborative networks, where people can call on one another for expertise, or just general encouragement, as we’re saying, I think that’s an important thing. That’s the community, right?

Eve Picker: Right.

Jonathan Tate: That’s what it takes for this to happen.

Eve Picker: Yeah. I wish every city had a Department of Big Ideas, and a little bit of money set aside for the projects, which they maybe turn their noses up at, because they’re small, and they don’t think they’re important enough; those little projects can sometimes have an enormous impact in an unintended way.

Jonathan Tate: Yeah.

Eve Picker: One of the stories I like about you, Jonathan, is you’ve created this whole thesis around odd-shaped, forgotten, and abandoned lots in New Orleans. Recently, didn’t New York City run a little competition on odd-shaped lots [cross talk] took from you. How did that competition end up, and why did they do that?

Jonathan Tate: Well, definitely don’t want to take credit for the idea there, but they … Actually, I followed it. We did not compete in it. We didn’t submit anything for it, but have certainly followed it. I think it ended up they selected some winners, and we’ll see if they’re interested, and want to actually construct the housing that’s on there, or that they’ve proposed, let’s say.

Jonathan Tate: Weirdly enough, I was having a conversation with a New York region developer early on … When I say early on in our process of building this housing … They said to me, “That’s really fascinating, but it only works where you are, or in similar-sized cities. It doesn’t make any sense in New York, at all.” Then, three years later, the city is saying, “No, this is exactly what we should be doing with these lots.” [cross talk]

Eve Picker: -another really great example of that is the Ciclovía that’s in Bogota, Colombia. I talked to the Mayor Peñalosa, who started that. He said they had no operational funds, and it was really a question of whether they created the Ciclovía, which is an open street once a week for the residents of the city, who are very poor, and the city had many problems, or whether they paved the roads.

Eve Picker: They chose to do this open street for the people, instead. The last time I looked, I think it was 100-miles long. Every Sunday, they close the streets, and people go out there, and run, and bicycle, and do lots of other learn things. That idea has spread to practically every city in the world.

Jonathan Tate: Yeah.

Eve Picker: It’s had an astounding impact , just that idea, so, those little ideas [cross talk]

Jonathan Tate: I think you’re right. Look at something  the High Line in New York, as well. I feel like every city is clamoring for their own version of that, now, too, because they just see how impactful, and how it’s making use of an abandoned resource, right?

Eve Picker: Right, so maybe … Go ahead.

Jonathan Tate: I was going to say, that’s part of this ethos, as well, when we when we talk about the development, or redevelopment of cities. It’s like looking at things not as, I don’t know, refuse, or eyesore, or junk, or waste, or whatever you want to call it.

Jonathan Tate: It’s just like there are opportunities all around us, and just understanding how to capitalize on those spaces, on those buildings, on those structures, it really takes imagination. That’s really, I think, what we should be supporting, and trying to cultivate. Back to your idea of the Department of Big Ideas, I think that’s a great idea.

Eve Picker: In other words, use every corner of the city, and don’t waste it, because we’ve built the infrastructure, and we paid for it, and there are people there. Anyway …

Jonathan Tate: Yeah, yeah.

Eve Picker: Well, I have to ask you, you’ve crowdfunded a couple of projects on our site, and I’m wondering what role you think that equity crowdfunding can play in building communities, or building better communities?

Jonathan Tate: Yeah, it is … Well, I’m going to have to say I’m absolutely enamored with it, as a process, and as a platform, and as a tool to help with development. The thing that I think it can do more of, and frankly, I haven’t done a great job with our own raises is how it might galvanize neighborhoods around development.

Jonathan Tate: I think that’s the one of the principal aspirations of this is that you can- that everyone should be able to participate, and be involved with the redevelopment of their own neighborhoods, or their own community, or their own city. They should be able to support that in some way.

Jonathan Tate: Again, here’s a tool for us to use that would enable people to support, and basically cast a vote for what they felt like were strong investments in their city, and that they see a benefit of that.

Jonathan Tate: That’s where, actually, if, or as the next raise comes, that’s the thing that would be … At least for us, on the crowdfunding raise, it’d be the thing that I’d want to try to focus on more of is just how do we pull people into it that are directly impacted by it?

Jonathan Tate: That’s where, again, that’s what I would see as one of the great advantages of this; just leveraging it, and making people aware of it. Then sort of pulling them into the process. I think that’s an important tool.

Eve Picker: Yeah, so, I think other than raising money, as you said, it can galvanize a neighborhood, and it could provide- even could provide proof to a zoning department that a project could go … I think there are maybe other things that we haven’t thought out about that it could help with kind of the crowd [inaudible], right?

Jonathan Tate: Yeah, and there again, it becomes emblematic, and you see it is  here’s a test case, and it proves that it’s right. It doesn’t have to be grandiose. You don’t need to raise $10 million. I think if it was a small project that a lot of people were able to participate in, then that’s … They have an ownership in that, [inaudible] people around it have ownership, and that’s great.

Eve Picker: Right. I suppose I have one wrap-up question; it’s a big one. That is how do you think real-estate development, or architecture, or thinking about cities could be improved in the US?

Jonathan Tate: Whoa, that’s a big one. Let me think … Let me think about that. Going back to the comment that I made about mid-sized housing, if you asked me that question today, I’m, again, increasingly interested, but also frustrated with the built environments that we’re seeing kind of rapidly expanding in most cities that reflect a lack of imagination, or better yet, the propensity for developers to sort of follow known models.

Jonathan Tate: In this case, it’s like we understand a certain kind of housing type, or you just kind of build that, because it’s known, and it’s comfortable, and we can rely on it. I don’t particularly care for the consequences of that in our cities. As things are popping up, it’s just- we’re losing characteristics, and qualities of our urban environments that I think make going to Pittsburgh different than coming to New Orleans, right?

Eve Picker: Right.

Jonathan Tate: I’d say that’s the piece. If we can start challenging the development community to think about things a little bit differently, or to try to localize a little bit more … I understand the economics around all of this, and why it is what it is, but it’s just revealing what’s happening now, just acknowledge it, so that, as we move forward, we could challenge some of those preconditions a little bit, and come up with work that feels like it was born out of the location that it belonged, right?

Eve Picker: Yes, yes, absolutely. Maybe the most important thing you said is lead by example, because if you do some terrific projects, others will follow, as we saw you do … You tackled odd-shaped lots, and New York City followed.  Perhaps, the timeline’s too long? I think having creative people working on cities, like you, is absolutely essential, and I want to thank you for that.

Jonathan Tate: Well, thank you.

Eve Picker: With that, let’s wrap up. I thank you very much for joining us, and I’m sure we’re going to talk again.

Jonathan Tate: Yeah, great. Thank you.

Eve Picker: That was the amazing Jonathan Tate. Today, Jonathan gave me three great takeaways. First, to always lead by example. Second, that I’d forgotten things can have great value, and third, that it’s worth looking beyond formulaic answers to solve tricky urban issues. What did you learn?

Eve Picker: You can read more about Jonathan on the show notes page for this podcast, at EvePicker.com. While you’re there, please consider signing up for my newsletter to find out more about how to make money in real estate, while making some change.

Eve Picker: Thanks so much for spending your time with Jonathan, and I today. We’ll talk again soon, but for now, this is Eve Picker signing off to go make some change.

Image courtesy of OJT (Office of Jonathan Tate)

Investing in nature.

August 12, 2019

The natural environment and real estate investment

When it comes to housing, for many years, concerns about the natural environment were low on the list of priorities for developers. Community-builders saw the natural environment as a backdrop for their projects rather than a critical element in their design and function. Think gated developments set within lush valleys or mountainside retreats that sit apart from their surroundings, rather than being integrated into the natural environment.

Despite the mistakes of the past, societal and consumer demands have led to a sea change in how many developers view the environment, and how they can integrate and protect the environment while still generating solid returns on their capital investments.

Encouraging walkability

Among the most important contributions a developer can make to the local environment is to build walkable communities. The ability to walk to local shops, work, and recreational activities decreases the addition of carbon monoxide and other noxious gases into the air. There are many other benefits offered by walkability, including healthier populations, increased local commerce, and the ability to save space by not building wide roads and parking lots.

Leaving the tree canopy intact

A 2018 US Forest Service study found that communities lost 36 million trees in just five years between 2009 and 2014, almost 1% of total tree coverage in the United States. Trees provide shade for nearby buildings and lower surface temperatures in the area. They also actively take in and release moisture, which helps cool the air. By embracing non-traditional development models, and protecting tree canopy and other natural features, developers can create communities that benefit the environment, while also attracting residents who have an appreciation for green living.

Embracing water saving technologies

The planet is getting hotter. Many areas of the country, particularly in Sun Belt states like Arizona, Nevada and New Mexico, are experiencing increasingly more severe and longer heatwaves. Many Sun Belt states rely heavily on aquifers, in particular, the Ogallala Aquifer, which acts as a significant source of water for eight states in and around the Sun Belt. Water-saving technologies like low drip faucets, water-efficient dishwashers and laundry machines, and xeriscaping can help save residents and investors money, while also preserving our precious water resources.

Utilizing alternative, pro-environment funding sources

One hundred of the largest companies on the planet are responsible for 71% of greenhouse gas emissions, according to The Guardian. These companies enjoy a symbiotic relationship with traditional banks, mortgage lenders, and other big financial players who are the primary source of funding for most real estate projects. If green building and green tech projects become the standard, these companies may lose billions or even trillions of dollars in value over the long term.  So it should comes as no surprise that these same companies are not particularly gung-ho about investing in green real estate projects.

Instead of soliciting funds from financial institutions that are diametrically opposed to progressive environmental and social ideals, developers can go straight to the people by raising capital with crowdfunding platforms. Millions of investors across the United States are ready to invest with their conscience, not just their pocket book, and a not-insignificant amount of those investors are interested in green building solutions.

Partnering with local governments and nonprofit organizations

Environmentally-friendly developers hold a unique advantage over large firms- they are well-positioned to work with the community and with government entities to get projects shovel ready and completed as soon as possible. This is especially true in dense urban areas. Cities are leading the way in green legislation, from building codes to transportation, and this allows developers in this space to have projects greenlit with far less resistance than a traditional development.

_

Every industry-not just real estate development- will have to adapt to a greener future. We’re already seeing the growth in this trend in the automotive, restaurant, logistics, and energy sectors, among others. This makes the choice to get in on the ground floor with environmentally sustainable development an easy one. The combination of community and government support, along with return on investment and cash flow boosting green measures make developing sustainably a formidable strategy for developers and investors.

Image by Eve Picker

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