Rethink Real Estate. For Good.

Investing

Wall Street capital.

Joel Miller serves as CEO of Wall Street Capital Partners (Advisors), a Real Estate Syndication firm based out of Atlanta GA,  specializing in sourcing and arranging debt and equity for acquisitions, development and recapitalization of Commercial Real Estate. The firm also invests its own acquisition and development projects as a GP investor. Current pipeline includes over 1,100 of Multifamily units primarily in Atlanta and the mid – Atlantic region. Joel has also been responsible for the intrinsic planning of site development for the execution of conservation strategies. He formerly served as head of Private Equity Fund Management & Investor relations related to Real Estate tax mitigation strategies for Cambridge Capital Partners (CCP). A boutique international investment bank focused on tax mitigation, capital markets, conservation easement strategies, and management advisory services. CCP was built on a platform of delivering tax efficiency with global business solutions. CCP’s clients include numerous banks, investors, and Fortune 500 companies throughout the Americas and Europe.

Joel began his career in New York City at U.S. Trust Co., After strengthening his acumen under some of Wall Street’s most influential financial strategists, he founded what would become Wall Street Capital Funding. Under the tutelage of Prudential Securities executives, at 28, he became one of the youngest CEO mortgage bankers in the history of the United States. The firm was ranked as one of the Top 10 Most Dependable Mortgage Companies in the SE. He has served as strategic adviser to one of the nation’s top ten wholesale mortgage banks and has served as a consultant on financial institution mergers. He has served as an adjunct Professor of Economics at the Clayton State University – Management School of Business. In late 2008, he received the privilege of being a tertiary adviser to President Barack Obama’s Transition Team on the topics of housing and the economy related to the residential Real Estate crisis of 2008. The Atlanta Business Journal named Joel one of the Top 40 under 40. He was also the host and producer of the “Mortgage Minute” and “The Joel Miller Show” on Business Radio 1160 AM The CFO, as well as a regular contributor to CNBC.

Currently, Joel also produces and hosts the Morning’s w/ Joel Commercial Real Estate Podcast which interviews and highlights the achievements of minorities in the CRE space. He also teaches the Capital Markets class for Project REAP. This fulfilled a commitment he made to stay accessible and to open his “Rolodex” to expose and encourage the next generation of CRE minorities to opportunities in the CRE space.

Read the podcast transcript here

Eve Picker: [00:00:03] Hi there. Thanks for joining me on Rethink Real Estate. For Good. I’m Eve Picker and I’m on a mission to make real estate work for everyone. I love real estate. Real estate makes places good or bad, rich or poor, beautiful or not. In this show, I’m interviewing the disruptors, those creative thinkers and doers that are shrugging off the status quo in order to build better for everyone.

Eve: [00:00:37] From Wall Street to mortgage banking to real estate developer, Joel Miller has focused his career with clarity and purpose. And now he’s taking it one step further by raising money for his next real estate project through crowdfunding. Joel wants to bring others up behind him. He wants to give others the opportunities he’s been given, and one small way to do that is to provide an opportunity for everyone to invest in his latest project. Early on in his career, Joel realized that his goal to lead an organization might not happen if he waited for an opportunity. So he made his own. He started his own company, Wall Street Capital Partners, specializing in sourcing and arranging debt and equity for acquisitions and development of real estate. And of course, over time, he started to build his own real estate portfolio. I enjoyed every moment of this conversation and so will you. Please listen in to hear more.

Eve: [00:01:56] Hi, Joel. I’m really delighted to have you join me today.

Joel Miller: [00:02:00] Hey, how are you, Eve? Good to be here. I’m happy to be here.

Eve: [00:02:04] Very good. So, I wanted to ask you about your journey from Wall Street to Wall Street Capital Partners. What led you to launch your own company?

Joel: [00:02:14] Well, you know, it’s very funny that you would ask that question because that was the thing that was running around in my mind when I was a young guy back on Wall Street, and I had this really ambitious dream of how I was going to be this top executive and do this and do that. And one thing I realized once I got to Wall Street was that there were other guys that were already ahead of me that were 20, 30 years older than me, and they were still trying to climb that ladder to get to where I wanted to be. And I didn’t want to wait 20 to 30 to 40 years to get there. And these guys were basically willing to kick me down the ladder to make sure I don’t pass them on the way up. So, I just simply had to decide, was I going to continue to play the Wall Street game? Or would I look for other opportunities where I might be able to shortcut that if I had the willingness to work very hard and the due diligence and the determination in order to make it happen. So that’s the short version for you older folks out there, the Reader’s Digest version of, you know, how this all came about.

Eve: [00:03:18] And when did you launch your company? And…

Joel: [00:03:21] Well, we actually started, believe it or not, in the early 90s. So this was some time ago, and we’ve had reiterations of the firm as we’ve grown as a company, adapted our focus over time. And, but that’s really when we got started back in those days.

Eve: [00:03:36] And I know you’re in Atlanta. So, you went from New York City to Atlanta. Why that move?

Joel: [00:03:44] Well, it’s very interesting you mentioned that. At the time I viewed Atlanta as New York 70 years ago. And what I mean by that is, if you look at New York City and you roll the carpet back 70 years, it was a new city, not necessarily new, but there was a lot of people coming into the city and creating what it is today. A lot of immigration, a lot of people coming in from the outside. And it opened up the opportunity for a lot of people that may not have been major players years ago to now be major players in the marketplace because there were no major players. Everybody was kind of trying to get their footing. And so, Atlanta back at that time was kind of the same type of place. This was before the Olympics. There were a lot of people migrating down there. It was wide open, and there was a lot of opportunity to really make your impression on the city without trying to, you know, knock off a lot of the older, established players that were there, like you saw in New York back at that time. So, it was an opportunity. It’s almost like, why did people decide to go west many years ago?

Eve: [00:04:50] That’s what I was thinking, like the gold rush.

Joel: [00:04:52] It was the same type of thing, yeah.

Eve: [00:04:53] How has that played out in Atlanta, do you think?

Joel: [00:04:57] Well, you know, I always ask that question, you know, where would I be today if I was still up in New York? So, I don’t know. But I think it’s worked out well. You know, one thing that’s good about Atlanta is you don’t have a lot of the, just the stresses of living. You know, New York is a very intense, compact city with people all over you. You know, everywhere you go, you walk right out to your building, there’s people all over the street. And, you know, to be in a more relaxed environment gives you more time, I think, to mentally kind of focus on what you’re trying to achieve. So, it’s worked out well for me. You know, I exchange the back yard of buildings and concrete to one of deer and trees.

Eve: [00:05:37] Nice! That’s nice. So tell me what services like Wall Street Capital Partner provides.

Joel: [00:05:44] Yeah. So, our core business over the years has been financing real estate, you know, so we’re the firm that many individuals come to in order to acquire real estate, refinance real estate, develop real estate, rehab real estate. We’re involved in that space. And as you can imagine, over time of making, you know, quite a few of our clients very wealthy, you know, we turned around and we said, you know, it’s time for us to step over to the other side of the table. So, years ago, we started investing in our own deals. And also, we decided to bring capital and resources to developers that maybe had deficiencies in their capital stack. Maybe they didn’t have experience, maybe they didn’t have all the capital, maybe they didn’t have the knowhow, maybe they didn’t understand the numbers, you know? So, we brought all that skill set to the table. And as a result of doing that, you know, we became equity players in other people’s deals and then started working on our own projects as well.

Eve: [00:06:45] So how big is your own portfolio now?

Joel: [00:06:49] Well our portfolio. I don’t really want to quote numbers here on online, but we’ve got quite a few projects that we’re more than happy to share with any investors that might be interested in investing in our projects.

Eve: [00:07:01] Okay. Fair enough. And are your projects primarily residential or commercial, for sale or for rent? What do you focus on?

Joel: [00:07:10] Yeah. So, our primary investments are, they might be for rent properties but we’re developing them for sale. You know now some of our acquisitions like in Atlanta, for an example, we’re looking at keeping those properties in the portfolio. Our development projects in the D.C. market we’re looking to sell. So, it really just depends on the market strategy, depending on where the property sits, as to what we plan to do with it. So, it’s kind of…

Eve: [00:07:41] Well that leads me to ask, you know, where are your buildings located? Where are these investments? Not just Atlanta, by the sounds of it.

Joel: [00:07:48] Yeah, not just Atlanta. Right now, we’re focused on acquisitions in Atlanta. We have other assets in New Orleans right now, and we have development projects that we’re working on up in the DC metro area.

Eve: [00:08:02] Okay. So, you’re in Atlanta. What’s the biggest need in real estate in Atlanta right now? What’s the biggest challenge?

Joel: [00:08:14] Uh, you know, that’s a multifaceted question. You know, it’s amazing because when I first got down here, it was rare to find a property that was, that cost $1 million to buy. You know, now it’s very common to find million-dollar homes. And yes, this is many years later, but just like many other markets, the cost of housing is an issue, especially in the urban core. The periphery of the city has got expensive as well. So, the demand for quality housing, even in those areas is a need. We have a issue with office space where there’s a lot of it available right now and what is that going to become? So that’s a need that has to be addressed. And you know traffic’s a big thing down here in Atlanta. Most people aren’t aware of that, but it is. And as a result, you know, many people want to live in urban core so that they don’t have to commute from outside the city. So affordable housing is something that’s needed as well. So I would say all of the issues associated with a major city is an issue here. One deficiency that Atlanta does have, though, is the mass transit is not as extensive as in New York or Washington, D.C. It’s more like a Los Angeles or Dallas or, you know, a city like that. And as a result, that presents its own challenges.

Eve: [00:09:35] So commute times can be long if you can’t live close in.

Joel: [00:09:39] Yeah.

Eve: [00:09:40] Okay. So, what’s your favorite success story? What’s a favorite project and why?

Joel: [00:09:50] Well, I think one of the favorite projects is one that we did in unison with a client of ours. They’ve kind of been the person. I don’t want to tell you how they get their real estate deals, because that’s kind of their secret sauce.

Eve: [00:10:04] It’s like their secret sauce.

Joel: [00:10:06] Yeah, so don’t want to disclose that.

Eve: [00:10:07] I know so many people who say that. I have to tell you.

Joel: [00:10:11] I know a lot of secret sauce out there, right? But, you know, this was a situation where the property was it was office. It was roughly about 30% occupied. It was in an area where, area wasn’t bad, but the property could have been doing a lot better, and everyone just kind of turned their nose up to it. It had an absentee owner from California, but it was down here in Atlanta in a very good market. And, you know, we got together and put together a strategy in unison with one of our clients to take over this property. It was about 400,000ft².

Eve: [00:10:49] Oh, that’s big.

Joel: [00:10:50] Yeah, and convert it to a very, very profitable office environment, right now. Even with offices beat up as it is and that sector being decimated as it is, this property is running north of 90% occupancy. Actually, last I checked it was 100% occupancy and it’s doing quite well. So that’s a huge success story and we would love to do that for more clients, especially minorities that are looking to get into commercial real estate. We started off with this particular client when they were buying. I think the first deal we did for them was, it was like a little dinky office building for like $147,000, you know? And now their portfolio is, I mean, eight figures, you know, high eight figures.

Eve: [00:11:37] Wow.

Joel: [00:11:38] So it’s, uh, it’s something that can be done, you know, in a short period of time. This particular client actually used to be a substitute schoolteacher of all things. So, it can be done. It can be done if you get the right team with you to work with you. And hopefully, you know, we view ourselves as that right team to help you get to the next level.

Eve: [00:11:58] So let’s talk about the King Henry. It’s a name I love, and that’s one of your current projects. And, full disclosure, you are listing this as an offering to raise funds on Small Change, my real estate crowdfunding platform. But it’s a really fascinating project. So where is it located and what is it?

Joel: [00:12:19] Yeah, absolutely. So this particular project is in Alexandria, Virginia. It is at the intersection of, well it’s sort of the King Henry corridor. I’ll just mention that if you know where that is. That’s the main artery that runs through Alexandria. It runs from the metro station at the Alexandria stop, all the way to the waterfront, where you could actually catch the water taxi to Washington, D.C., right to downtown. And it’s a tremendous location that I got excited about, just simply because of all of the traffic and the vibrance of the city. You know, one thing that’s very unique about Alexandria, and I know you have some other questions for me on it, but one thing that I really like about it is it’s one of those few areas in the country where you have a lot of mom-and-pop shops. You know, you’re not going to walk down the street, and there’s a Walmart on every corner and a Target and a this and a that. Nothing wrong with those guys. So let me, they might want to sponsor us one day, so let me not throw them under the bus. But the idea of being able to support local businesses, the local coffee shop, the local bakery, the local, you know, jazz club, you know, all these things is available in Alexandria, Virginia, where you can really feel a part of the community. And with the cobblestone streets and everything, it’s just a wonderful area. Specifically, what we’re doing there, we’re replacing surface parking that is there currently with structured parking. We’re using an automated mechanical parking system, which will take roughly 40 spots and turn it into 140.

Eve: [00:13:56] Isn’t that insane?

Joel: [00:13:57] I know, it’s impossible.

Eve: [00:13:57] I love that, I love that.

Joel: [00:13:59] Yeah, it looks impossible, but we’ve got it all structured and built out in the architectural drawings. And we’re also putting up 50 units of multifamily housing with retail on the ground floor.

Eve: [00:14:12] So all of that replaces how many surface parking spaces right now?

Joel: [00:14:17] Yeah, roughly about 40 spots.

Eve: [00:14:19] Total.

Eve: [00:14:20] Yeah.

Eve: [00:14:21] On all the. That’s crazy.

Joel: [00:14:23] Yeah, it is crazy.

Eve: [00:14:24] Not the highest and best use. Right.

Joel: [00:14:27] Yeah. Well, that’s the point. The city realized that this wasn’t the highest and best use for that space, and that you certainly can increase the tax base by doing what we proposed. And they’ve signed off on it. And, you know, it’s a permit ready site. We’re doing it.

Eve: [00:14:42] So, how does this compare to your other past projects? Is this unusual or standard?

Joel: [00:14:51] No. Well, you know, it’s unusual from the standpoint that, you know, generally you have, you know, 150, 200, 300, 400 projects. The one that we’re working on in a city very close to that is actually 600 units, you know, and that’s a skyscraper. So, you know, generally we do get involved in much larger projects. This one I really like because of the barriers to entry. You know, you’re not going to have everybody building a similar product right next to you because it’s [inaudible].

Eve: [00:15:24] It’s very unique

Joel: [00:15:25] Yeah, it’s very unique. It’s a historic city. And you can’t just go in there and tear stuff down, which is why we’re having to do it where surface parking is, right? Where something was already torn down.

Eve: [00:15:34] Interesting.

Joel: [00:15:35] Yeah.

Eve: [00:15:35] And so what’s the total development cost for that project?

Joel: [00:15:39] Approximately total development cost is roughly $42 million.

Eve: [00:15:43] And what does the financing look like for a project like that? Roughly.

Joel: [00:15:48] Yeah, roughly, we’ll do 60% of that debt. We will raise the rest in equity, which will be roughly about $16 million. And then we’re cutting off a slice of that for participation by some smaller investors that may want to get involved. Usually projects like this, it’s all people with deep pockets that get involved, and they make all the returns and all the money. And, you know, the average working-class person is generally relegated to getting in real estate by means of doing fix and flips, you know, and trying their hand at that. And they’ll, you’re never going to get to where you want to be just doing little small fix and flips. You can do okay, but you’re not going to get to that million, multi-million-dollar threshold. But participating in much bigger deals you can eventually get there. So, you know we think this is a great opportunity.

Eve: [00:16:39] So that opportunity is listed on our platform smallchange.co if anyone is interested. But I’m just wondering why, I mean this is probably a little bit more work for you than just going out and raising the money from one institutional investor, right? So, why?

Joel: [00:16:58] Yeah, well, you know, you asked the reason why. And just to give you a little background, you know, I have teenage boys and obviously I want them to come up and hopefully be in the industry and learn the commercial side of it from day one and grow and become major players in the space as opposed to just becoming maybe just a realtor with a real estate license, selling single family homes or, you know, doing fix and flips their whole life. So, in addition to that, I also teach the capital markets class for some institutions. One is called REAP, the project REAP program, where individuals that are looking to get into commercial real estate can actually participate and learn the business from people that are already in the business and learn how they can participate in deals. So, long story short Eve, I have a passion about helping those that are behind me because there’s people in front of me that have helped me get to where I am today. I have mentors, right? So why wouldn’t I pay that forward and help the next generation of folks coming along to be able to get in deals? Yeah, also, you know, growing up in New York City, I’ve seen how people seem to never get out of the rut.

Joel: [00:18:13] You know, when I was a kid, I thought the only way I could get to the next level was, everybody in the neighborhood it was either drugs or sports. That was the only way you were going to get a get out, you know, and get to that next level. And so, the idea of of being able to get other people into these deals at this level where they can say, yes, I was an investor in a $42 million deal, opens the door for them to do much bigger deals and become the part of the investor pool in much bigger things and much bigger opportunities. And it even exposes them if they want to do some bigger stuff on their own down the road. So, I think it’s great just to open up the door and let, at least let a slice of that $16 million go to some smaller investors so that they can participate and be part of the action. And it’s a passion that I have. I’ve been doing it for free, you know, even on my podcast and doing these shows and everything else, you know, it’s just a passion that I have to give back. And I think this is another way I can do it.

Eve: [00:19:14] So just dialing back a little bit, what are some of the challenges you’ve been confronted with personally as a Black man in real estate, which we know is a, really a white man’s industry still, very much so.

Joel: [00:19:29] Yeah. I mean, realistically, I can’t give you hard facts, but I do know that Blacks represent about 3% of the commercial real estate space across the board, 3%. But they make up 16% of the population. So, you kind of wonder why is that dichotomy there where you have so little that are in these type of deals? You know, and it’s mainly a white male dominated business, as you know. So, one of the challenges has always been access to capital for minorities. It’s a really, really big thing. My business partner on this deal has developed over 14,000 apartment units. So, you know, his experience obviously goes a long way toward getting this thing done. But just being a minority in the space, you know, people tend to gravitate toward folks that they have some type of camaraderie or some type of relationship to. And if you’re never used to seeing a minority do deals like this, it’s almost like, well, are they for real? Because I’ve never seen this before. Can they really pull this off, do they have the smarts? Remember, it wasn’t too long ago where it was said that Blacks weren’t smart enough to be a professional football coach or be the quarterback of a professional football team. That was in my lifespan. So, you know, those are the challenges and they’re not written down anywhere. But, you know, the fact that it’s a 3% penetrated industry, you know, I mean, kind of tells the tale of the tape. That doesn’t mean that there’s not a whole bunch of other people that would like to be players in commercial real estate. They just haven’t had the chance. And it always boils down to access to capital, 99% of the time, because they don’t have a daddy or somebody else that might be able to walk them into a into a bank or into an investment firm to get that capital.

Eve: [00:21:24] So what advice would you give to someone starting out a career in commercial real estate who has, who’s not a white man?

Joel: [00:21:38] Yeah, well.

Eve: [00:21:38] Anyone who, you know is from an underrepresented background or yeah, even a female, because I think the numbers look about the same for women. It’s pretty bad, yeah.

Joel: [00:21:50] Yeah. Yeah, exactly. And, you know, I want to be clear also that I’m not beating up on white males. And I want to say that because if it wasn’t for white men, the civil rights movement wouldn’t have got as far as it did. You wouldn’t even have HBCUs in Black or southern parts of the country if it wasn’t for white men that got behind trying to help these initiatives go forward. So, you know, again, it’s not a race of people, it’s just the way the numbers shake out. Right?

Eve: [00:22:24] It’s who has, I suppose, who has control right now. And we have to figure out how to shift that a little bit, right? That’s what we’re trying to do here.

Joel: [00:22:33] Exactly. Exactly. So, and even as I mentioned, my partner on this deal is a white male. So, you know, I’m certainly not beating up on white men. But I will say this when you ask about how does that change? I would say one of the things is to get involved in a deal like this one. The reason why is because then you can put on your resume of deals that you’ve invested in, hey, I was one of the investors in a $42 million deal. You know, that goes on your resume and, you know, participate at that level. Also, getting in with other individuals that have, you know, been involved in commercial real estate and deals like that. And part of it is just getting out there and meeting key folks that are in the space. You know, as I mentioned briefly, we have a podcast that doesn’t compete with you Eve, but it’s more so.

Eve: [00:23:22] I’m sure it does.

Joel: [00:23:24] No, no, it doesn’t. Because we’re not raising, you know, we’re not doing anything there, but we are introducing folks to others that have been highly successful in commercial real estate, and they can learn from them as to what they did in order to be so successful in commercial real estate. So, I would say exposure, you know, and then there’s trade organizations that are out there like, you know, A-REP and REAP and some of the others where you can get involved and meet the people that are making inroads in commercial real estate. So those are the things I would say. But getting a deal, I mean, because once you’re in the deal, then you can start reviewing the deal from the inside out and really learning this business.

Eve: [00:24:04] Yeah, yeah. There’s also a lot of meetups and clubs now. More and more of them are merging, which I think are a great way to start learning because it’s a lot to learn. And also, actually ULI, Urban Land Institute, can be a great source of information. So, lots out there. But what are you proudest of?

Joel: [00:24:24] What am I proudest of?

Eve: [00:24:26] In your career, not just your boys.

Joel: [00:24:31] Yeah, everybody says what they’re proudest of is, you know, being a great dad. Right? All that stuff aside, I mean, if you’re acting professionally. You know, Eve, it’s hard for me to answer that because I’m always focused on the future. I’m not focused on the past. So, while I’m happy about the things that I’ve accomplished and, you know, even being involved in the deal sizes that we’re talking about is, you know, something that often just the 1% of the population in commercial real estate get to participate in. So, I’m very happy and I’m proud about that, to even be having this conversation. So, I think that would be the answer to your question. But for me, I still got a lot of few things that I want to do before they write my obituary.

Eve: [00:25:18] Well, what is that? What’s your big hairy audacious goal?

Joel: [00:25:22] You know, I want to get these, these deals done. And we’re looking to grow our portfolio. We’re looking to have a balanced portfolio between acquisitions, where we’re providing affordable housing and, you know, blended housing in a lot of different areas. And we also are looking to develop projects in other key markets around the country. So that’s really our focus. And you know, with your help, Eve, I think we’ll get there.

Eve: [00:25:51] That would be wonderful. Okay. It’s been a pleasure talking to you. And everyone, take a look at smallchange.co. It’s an interesting project and I just love the automated parking. By the way, where was that developed? Where is that company from that’s providing the automated parking solution?

Joel: [00:26:12] You know, that’s a good question. I don’t know where they’re headquartered, so I can’t answer that. But if you go to smallchange.co, you will be able to get information on the project. You’ll be able to watch a video that actually shows you exactly how it works, and it will give you the information on the company so you can do your research on them there if you want to as well. And you’ll also get a chance to see where these products are already operating in other parts of the country.

Eve: [00:26:36] Well, thank you so much for joining me today. It’s been a pleasure.

Joel: [00:26:40] Thank you Eve, certainly appreciate being here and happy to come back in any other time you want me.

Eve: [00:26:51] I hope you enjoyed today’s guest and our deep dive. You can find out more about this episode or others you might have missed on the show notes page at RethinkRealEstateforGood.co. There’s lots to listen to there. Please support this podcast and all the great work my guests do by sharing it with others, posting about it on social media, or leaving a rating and a review. To catch all the latest from me, you can follow me on LinkedIn. Even better, if you’re ready to dabble in some impact investing, head on over to smallchange.co where I spend most of my time. A special thanks to David Allardice for his excellent editing of this podcast and original music. And a big thanks to you for spending your time with me today. We’ll talk again soon. But for now, this is Eve Picker signing off to go make some change.

Image courtesy of Joel Miller

Starter Home disappears.

What happens when Wall Street comes for the starter home?    

In a slightly depressing piece of journalism, the New York Times documented the answer to this question by exploring sales in a neighborhood of Charlotte, NC. Between 2021 and 2022 one-third of the houses in just one block of this 34-year old subdivision were bought in all-cash deals by investors. 

And then they were converted to rental housing.  

What has the impact been?  A few years ago, Bradfield Farms was truly affordable. You could buy a starter home here – a modest house for around $200,000.  That is no longer possible. First time home-buyers are struggling with high interest rates and competing against all-cash buyers. This is not a fight that is easy to win.

There are lots of other reasons why affordable for-sale houses are disappearing.  But this one is an unexpected outcome of a poor economy and the overwhelming desire of investors to make money and will have long-lingering effects.  It is unlikely that any of those homes will ever be an opportunity for a first-time home buyer again.

And of course this means that we all have to work harder building new ones.

Americas YLG: Crowdfunding for Real Estate.

Eve Picker is participating in Crowdfunding for Real Estate, a virtual event hosted by the ULI Americas Young Leaders Group. This event will explore new ways to invest in development projects in an exclusive event offered to Young Leaders on Thursday, September 28, 2023 at 12:00 p.m. ET.

The panel, made up of Mark K. Bhasin, CFA, FRM, FDP, CMT, ERP, PRM, WELL AP, Brian Dally, and Eve Picker, will discuss the basics of real estate crowdfunding, how it works, different types of crowdfunding platforms, and the risks and rewards involved. Attendees will also hear from experts in the field who will share their insights on how to use crowdfunding to achieve your investment and project development goals. 

This event is open to all commercial real estate professionals under the age of 35. Whether you are just starting out in your career or you’re a seasoned investor, you will learn valuable information that you can use to make informed investment decisions. 

Register here. 

Image courtesy of Americas YLG

Be Good Development.

Franchell Abdalla is the principal of BE GOOD DEVELOPMENT PARTNERS,  a real estate development firm specializing in the acquisition, financial structuring, community engagement and execution of real estate projects.

BE GOOD’s development consulting services enable their clients to achieve their full development goals. For municipal governments and public housing authorities, Francell adapts methods suited to the particular municipal context and agency portfolio. For non-profit and for-profit developers, she provides a range of services throughout the pre-development, development and post-development periods, emphasizing strategic investments in people, places and transformative projects.  In addition, Franchell has an equity stake in many of the projects she is working on.

Franchell has over 15 years’ experience driving strategic growth and diversifying funding portfolios for nonprofit organizations, government entities, public housing authorities and community stakeholders. She is highly competitive, detail focused, persuasive and articulate, able to achieve results others believed to be impossible. Her expertise lies in forging collaborations across sectors, building sustainable partnerships, commercial real estate development, strategic visioning and program development. She is trained in social anthropology, at the University of Nebraska, holds a Masters in Public Administration from Bellevue University and a Masters Certificate in Nonprofit Management (focus in Urban Public Policy) from the University of Nebraska at Omaha.

Read the podcast transcript here

Eve Picker: [00:00:07] Hi there. Thanks for joining me on Rethink Real Estate. For Good. I’m Eve Picker and I’m on a mission to make real estate work for everyone. I love real estate. Real estate makes places good or bad, rich or poor, beautiful or not. In this show, I’m interviewing the disruptors, those creative thinkers and doers that are shrugging off the status quo in order to build better for everyone.

Eve: [00:00:41] Today I’m interviewing Franchell Abdalla, a minority in every sense of the word. She is black, a woman, and a real estate developer. But that’s not stopping her, not for one little moment. Franchell only recently launched her development company, Be Good Development. And yet she has her sights set on an incredibly complex and rich real estate project. She assembled an astounding team to win a significant request for proposals issued by the city of Tulsa in Oklahoma. She won and has been grappling with a 100,000 square foot foundry building, planning its repurposed life and working on the legal and financial structure. There are plenty of setbacks, as there always are in projects like this, but to Franchell it is all a joyful challenge. There is lots to love in my conversation with Franchell. Please listen in.

Eve: [00:01:54] Hello, Franchell, I’m really delighted to have you join me today.

Franchell Abdulla: [00:01:57] It’s great to be here, Eve. Thank you so much for inviting me.

Eve: [00:02:01] Good. So how does a sociology major become a real estate developer? I’d really like to hear about your journey.

Franchell: [00:02:09] Yeah, absolutely. I would say in a very non-traditional, kind of circuitous way. I started off really, as a pre-med major in college, and so as a pre-med major, I thought, you know, like most people, I’m going to graduate, go to med school and then my focus was really on becoming a Foreign Service officer, wanted to do Peace Corps and the like. And so, started off, but, you know, never thought about sociology, didn’t know anything about sociology, started taking classes and was hooked, right? So sociology and then cultural anthropology were things that I focused on as an undergraduate. And really, just the study of people and cultures and societies is what really gave me this kind of foundational understanding of the importance of community and community building in real estate development. I landed in real estate in a way that’s very non-traditional, right? I needed a job. I just had my second little one. She was six weeks old and there was an opportunity to work at the Housing Authority in Omaha. And so. I literally took a temp job on a whim because we needed to feed them and went and just fell in love.

Franchell: [00:03:19] I’ve always had a love of the built environment, and I think my mother probably would have been an architect if she had the language for it. But she went into computer science engineering instead. But she was an artist and a very analytical mind. And so, we were like really steeped in that. And so when I get to the housing Authority, it was really a merging of all of those experiences I had had along the way. It was both built environment it was just kind of pragmatic approach to development and my understanding of development, it was the practical application of really learning how to work through grants and fund raising and capital improvement projects. And then at the same time, it was just undergirded by the love of community and how do you create opportunities in communities. So, it wasn’t a direct path. I didn’t even know what real estate development was when I got into it. But I definitely am so grateful for the way that it is, it’s kind of unfolding.

Eve: [00:04:17] Isn’t it great the way you can find a path unexpectedly and fall in love with it? It’s really great.

Franchell: [00:04:23] Absolutely. That’s why I love the story of Iris Apfel, where she talks about, she is like this accidental icon. I feel like I’m the accidental developer very much in the same way.

Eve: [00:04:34] The accidental developer. That’s what we’ll have to call this podcast. Okay.

Franchell: [00:04:36] Yes.

Eve: [00:04:39] So then you launched Be Good Development Partners. What led you to launch that? That’s a long journey from the Housing Authority too, and when was that?

Franchell: [00:04:51] So I launched fully in 2018 as Be Good Development Partners, and it really initially was called Transformative Community Development. It was a way that I was consulting for the Housing Authority and for the city of Omaha while I was working at the Housing Authority. And so, once I transitioned to Tulsa, I wanted to be able to move TCF with me and thought, you know, it’s a, it needs a rename, right? It’s time to rebrand. I wanted something fresh and new, and I really grew up with a very large family and something that my grandmother always talked about, you know, was like being like this silent kind of goodness, right? At the block level. My grandmother didn’t go past sixth grade, and so she was kind of like this rock on our block, right? when I was a little kid. And she always had a saying that was be good. Every time we would talk to her or leave or have a conversation with her, she always ended with, well, be good. And so, for me, that was a way to kind of like honor her legacy and honor her. And so, when I came to Tulsa and decided that it was time to also go into development, which was also accidental, by the way, Be Good seemed fitting as a name, so Be Good Development Partners kind of was born out of that.

Eve: [00:06:04] So what is your philosophy then as a real estate developer?

Franchell: [00:06:09] I would say my philosophy is really about transforming communities from the inside out, really looking at what are ways that we can create goodness by being small and intentional and impactful in the spaces that we reside in? How can we think about the communities that we’re developing and as a neighbor rather than an outsider? And then, how do we create this real, not only catalytic, I think, but disruptive change from a systems level? And so Be Good really is that amalgamation of those things. It’s how do we create good? How do we ensure that there is long, impactful good? And then, you know, at the end of it, how are we just being in community, showing up in those ways in order to be good?

Eve: [00:06:56] And then I have to ask, so, your portfolio, when did you launch? It’s been a while.

Franchell: [00:07:03] It’s been 2018 since I came here, but I literally launched in 2021 with the Evans Venture Project. Oh, so very young.

Eve: [00:07:13] Very, very new firm.

Eve: [00:07:15] Yes. And why Tulsa?

Franchell: [00:07:17] So, I was initially relocated to Tulsa for a job, so I was kind of poached out of Omaha doing some of the work that I’d been doing in community and, you know, attracted to come here. So, I worked for a small nonprofit, and my goal was to really raise about $13 million and do a full-blown capital campaign for our Child Abuse Network, which is a small nonprofit focused on like childhood intervention and prevention around child abuse and neglect. And so it was in a very different space that I had operated in. But it was kind of this opportunity that I couldn’t pass up. There was a great leader at the helm of it at the time that had come. She’d been a city councilor. As soon as I came here, I really believed in the vision. I really believed in, like, what the direction was going to be for the organization. And so I just decided it was time, you know? And so we uprooted and came to Tulsa, and six weeks later she left the organization. It ended up in hindsight, it was probably one of the most incredible opportunities that ever happened because it forced me to dig in and figure out where I was at, start to break apart what is this community? Who are some of the key stakeholders in the community around this particular issue? What are other communities that I’d be interested in? And I got an opportunity to really raise and recruit money and then do the construction feasibility and build out. So, I was able to kind of like lean into all these different spaces in a very unique way. And then we stayed, you know, great friends and stuff. So, she continues to be a mentor, even though she works for the city of Tulsa now.

Eve: [00:08:53] Interesting. So, do you have any projects under your belt yet for Be Good?

Franchell: [00:08:59] So projects under my belt for Be Good, again, like I said, I do a lot of development consultant, so working with the small ten-acre project, it’s really an agrihood kind of project I’m very excited about where it’ll be a really an arts and culture enclave, so it’ll be a small creative co-working space and venue. It’ll be some Air BnB cabins, and then it’ll also be a small, tiny home village for artists to come and do residencies and fellowships in the arts. So very excited about that. Um, I would say we’re also working on a very, very, very, very cool project that I’ll be heading out to look at today that’s really focused on our large, unhoused population. And so, it’s also a village concept looking at what are, like, how do we insert supportive services and wrap-around supports for people who are chronically unhoused? And its master planning that site. And so being able to pull together, you know, a small all-female team is like really exciting for me on that. And it’s 23 acres. And then of course, the one that we’re probably the most well-known for that really launched us is the Evans-Fintube project in historic Greenwood. And so those are some of the projects that I’m working on.

Eve: [00:10:16] And that’s a really big one too, right?

Franchell: [00:10:18] It’s a huge project, not in terms of its footprint, although it is an 11-acre site and it’s a historic mixed-use. It would look to change the Oklahoma Ironworks into commercial retail community anchored commerce as well as some retail and breweries. But then it would also create hospitality as well as some additional office space.

Eve: [00:10:41] So you’re glossing over these, but really, these are unusual, unusually large and complex projects for a small star-up real estate developer.

Franchell: [00:10:52] Yes.

Eve: [00:10:53] You know, typically you hear, well, I flipped a couple of houses and now I’m looking at a fourplex. So, you just went from nothing to everything, Right?

Franchell: [00:11:05] Right. If you’re just going to go, go all the way in. Right.

Eve: [00:11:55] And especially through Covid, which has been really horrendously difficult in the construction industry. And borrowing money. So, any of these projects yours or are they mostly consulting projects?

Franchell: [00:11:20] The first project that I talked about with Agrihood, I am an equity partner and then the developer on that project, the same with Evans-Fintube would also be a part of the ownership group as well. And that would be my project.

Eve: [00:11:33] Okay, that’s fabulous. They are big and complex projects. So where does your inspiration come from and how do you find these projects and does history count?

Franchell: [00:11:46] Um, history always counts, right? If we’re going to be thinking about how we build for the future, history is critically important, but I think the projects, they come out of where I am, you know, the folks that I’m working with, architects, planners, construction folks, community members, my neighbors. I think they come out of my love for this place. Um, seeing things that are currently missing in either the skyline or the landscape that that we deserve to have injected back into community. And I think they come out of this just passion for making sure that what we build is not just meaningful, but it’s sustainable and it’s built and designed and led by and owned by folks who look like people that come from the places and spaces I come from. So that’s kind of what it’s born out of.

Eve: [00:13:40] Let’s talk about the Evans-Fintube project, which is the big one in in Tulsa, Oklahoma, and just explain what is that?

Franchell: [00:12:55] Evans-Fintube, it was a foundry. And so, it was a site for one of the largest kind of steel and metal manufacturing facilities in the state of Oklahoma, let alone Tulsa. But it was established in about 1901, and it was originally Bethlehem Steel and Supply. And so much of the steel that’s in the skyscrapers that are in the downtown skyline came out of this particular foundry. And so, between 1901, which is really pre-statehood in Oklahoma all the way to about 1961, this building operated and it was a series of about 20 buildings that were on 22 acres of land. Well, to the north of us now is the BMX international headquarters that occupies 11. And then Evans-Fintube, which is the only originally standing building, is on the remaining southern edge, which is 11 acres as well.

Franchell: [00:13:52] But what’s really unique, I think, about this particular site is that it tells the story of Tulsa. It is Tulsa. Tulsa as we know it. It talks about the story of philanthropy, Bethlehem Steel and Supply, which then became known as the Oklahoma Ironworks Building. It is sitting on 11 acres of historic Greenwood. And what that means in terms of the 1921 Tulsa race massacre, the building itself sits on top of two Cherokee allotments, which is interesting because Tulsa, yeah, Tulsa is the largest reservation in Oklahoma. And so, we’re still in Indian territory. And this building kind of is a line of demarcation for that. And then the southern edge is actually the original block 49 of the city of Tulsa. And so, it is an actual Creek Freedmen settlement.

Franchell: [00:14:42] And so it’s all this unique complexity and beauty of Tulsa, both, you know, good as we know it, right? The oil boom, the art deco buildings that have gone up, you know, the story of, you know, small town boomers that come and build their livings. And then it’s also the complexity of the forced migration into Indian territory, being on a reservation, re-allotment of land. We’re bounded by Highway 244, so it speaks to eminent domain and what that did in communities of color. And then again, it’s in historic Greenwood. And so, when we think about what happened in 1921 and the Tulsa race massacre, this building actually sits as a backdrop to that experience. And so, while most of Greenwood burned in 1921, this building was never scorched. And so, you know, we really feel like it’s an opportunity to not just reclaim space but reassert the right to have space into the future. And so, for us, it’s really this interesting weaving of a Tulsa narrative that I think has the potential to speak to not just Tulsans, but I think The Globe. And so that’s what’s exciting about the project. It’s a very unique project.

Eve: [00:15:53] I’m watching your face and I’m seeing your excitement. And most people would run screaming from this sort of complexity, but it looks to me like you run right into it. Yeah, yeah, That’s pretty fascinating. So, what is the building? How big is it and what are you turning it into?

Franchell: [00:16:12] So the building is 100,000ft² and it’s simply beautiful. It has this incredible layout. And because it was a foundry, I mean, there are lots of, like, steel and brick and glass. And so, we’re going to be reskinning it in that way. But what we’re looking at is having a 54-room boutique hotel. And really that’s a tribute and an honor to J.B. Stratford, who was one of the, I would say, singular, most well-known folks who had a hotel in Tulsa at the time of the height of 1921. It was burned to the ground. And so, we want to be able to pay homage to that and rebuild that with inside the footprint. And then there will be about 25,000ft² of localized retail. So again, really kind of restitching that thought and that ethos around Black Wall Street being rebuilt, creating these opportunities for local businesses and small entrepreneurs to come into this space and that retail space and have pop-ups to be able to have shops, to be able to really make their mark and create a new market for commerce and cultural tourism. And then there’s a small, I would say it’s about 14,000ft², of creative office. And so it’s like, how do we encourage folks who are into tech, who are into arts and culture, music production, video production, to be able to come and be housed there? So it’s a producers lab is really what it is in terms of creative office and then again, a food hall concept, but not your food hall of the 2000s, really more of a chefs collective, where it’s a curated list of local restaurateurs and local chefs that have pop-up menus, provide a variety of different offerings to folks at our site as well as to the BMX and then also throughout the downtown corridor. So that’s the building.

Eve: [00:18:10] So in other words, as complex as its history.

Franchell: [00:18:14] It could get. It is actually.

Eve: [00:18:17] It’s totally wonderful. So, you won an RFP. The city owns this project. Tell me about that. For those of our listeners, you’re a Black real estate developer, which is in itself extremely unusual. But you won this, unfortunately very rare, but you won this RFP from the city. Probably, there was some, you know, rather traditional developers who went up against you. Right?

Franchell: [00:18:45] There were, there were lots. There were actually 12 that we competed against.

Eve: [00:18:50] Wow.

Franchell: [00:18:51] And that was exciting. So, we started the RFQ originally in April of 2021. And so, we had been in that process for a while. And so, we went through RFQ and out of the 12 developers or development teams that submitted, it was actually whittled down to four. And out of the four, I was on two teams and so I was on one team as a development consultant and then one kind of leading this small, localized, ragtag team of folks. And at that point it became public that I was on two. And so, I made a decision that if there was ever going to be an opportunity to launch, this might be the way to launch.

Eve: [00:19:35] Yes, indeed.

Franchell: [00:19:36] And so decided to lead that team from RFQ into the RFP. And then we were in the RFP for about a year, and I was able to assemble not just a local team that was really strong that I love, right? Because we have a lead project engineer that is African American. Our lead project architect runs a small architecture firm, young African American woman. The head of our construction, while it’s a large construction entity, our project director is an African American woman. The person who leads the minority contractor Academy for Trade Partner Development and Skill Development is an African American woman. We were able to really start to identify these strengths in community that oftentimes get overlooked but could be elevated given the opportunity. And so, you know, our mantra was this, you know, we have an opportunity to create and really expand local capacity, leveraging national talent. And so our construction company is a national firm. We have a design consultant, is a national firm. Our historic preservation consultant is also a national firm.

Franchell: [00:20:50] And so we’re able to use those skill sets, that capacity to be able to bolster what we have at the local level. So once this development project is over, that capacity stays in community and can only grow and evolve. And so that has really been the gift of being the leader of this team, is being able to see that flourish. Stayed in the RFP for a year, went through a lot of series of, you know, fits and starts in that process because there were many people that didn’t want to see it maybe progress as far as it did. But eventually, you know, after we started, we were awarded May 10th of 2022, the RFP, and it was announced. And then since it was announced, we have continued to kind of work through a series of both requirements and challenges. Community engagement. I really credit community to ensuring that we won not because we weren’t the most qualified with community backing, but we were the most qualified team with the greatest amount of community engagement and support. And so, I’m very, very proud of that because we are a community team with, I think, national expertise. And so, we just continue to work on that. We have definitely faced challenges as it relates to this project.

Eve: [00:22:12] Tell me about the challenges, because I’ve been through an RFP process like this as well, and we had the architecture team drop out at the most awful moment when I think we would have been selected. So it was, you know, I understand that because it’s such a long process, it’s a pretty fragile process.

Franchell: [00:22:32] It is. It is. And I think those are the lessons that you learn when you get into this space, right? It’s the things that you don’t know that can happen. And so as we’ve progressed through the project, have had lots of iterations around how to properly set up the LLCs, what are the roles and responsibilities, what is the role of the city, right? Because the city is the actual owner of the land. But there is an economic development entity that has actually managed and facilitated the process even though they don’t own it. So, we kind of have two constituencies that we have to support and ensure that they feel comfortable with us. The project team, the project team has stayed intact. We did have one shift. We previously had someone who was maybe a managing member of an entity moved from being an employee to becoming his own kind of developer. And so that shift caused a great amount of concern in our team to the point where this kind of economic development entity said, well, you know what, no, you no longer have the capacity, you no longer have the skill set that left when this individual left. And so we want to stop the process, put it on hold and not award you the RFP.

Franchell: [00:23:47] What it is teaching me is that I never understood how political the development process is. Right? You can love a great building, love a great space, believe in the possibility of a project, but understanding the complexity and the politics around how things get built is equally important. And it’s also showing us, I think, as a team, a collective team, because I will say, while that individual left, no one on my team has dropped out in the two years that we’ve been in this, which is a testament to their own passion and commitment to this. But what I love about it is it’s also showing that there are tough times where, as women and as developers of color, in particular, you know, being a black female developer, developing in a space that there are no black female developers. I’m the first black developer to ever make it this far in an RFP in the city and absolutely the first female developer to do that. It is creating conversations around the discomfort of seeing me show up in the space that traditionally we have not occupied. And so, I love that, right? I love that. The room doesn’t have to be prepared for me. I can figure out a way to create a new table, but I want to have those uncomfortable conversations about why it’s necessary that I’m in the room. Necessary, why folks who look like us are in those spaces. We bring a very different view to development and one that’s missing and necessary in the future of how cities are built and created.

Eve: [00:25:28] Right. And there are challenges with financing, too, which may be.

Franchell: [00:25:33] My goodness.

Eve: [00:25:34] Are they political or are they just inbred? I don’t know.

Franchell: [00:25:38] Right. And are they both?

Eve: [00:25:40] Are they both.

Franchell: [00:26:41] You know, political at the local level, right? Like did you use a local bank? Who got the local construction contract that’s going to have the depository, you know? And then at a national level, like these changes in capital markets, inflation, rising interest rates, I mean, they’ve increased our project budget by about 20 million in the first phase. And so, to have a project that went from $41 million in the first phase to $68 million in the first phase, I mean changes all the numbers, right?

Eve: [00:26:12] And so now I’m building a project where it’s exactly the same, a 50% increase. It’s crazy. It’s been a crazy couple of years, Franchell, really crazy.

Franchell: [00:26:23] It has been. I mean, whether it’s lending requirements have changed, how you’re being scrutinized through underwriting, right? And there’s something to be said when you’re managing just numbers and they’re looking at that as a package. And then there’s something to be said when you add on the layer and complexity of the mitigating you as the risk as well. And so, we’ve had to think through that and get creative about reprogramming, building out in stages even within the first phase. And then we’ve had to think more creatively about what type of capital should we attract, whether that’s individual investment, community investment now. What additional federal dollars could be attracted to the project, new markets, tax credits, solar? And then also, you know, is there philanthropic investment that we can look to to fund some of these, like, financing gaps?

Eve: [00:27:14] Right, right. So, do you think all of this is going to be resolved?

Franchell: [00:27:18] You know, development is funny. That’s why I kind of love it. You never, never know, right? We get a notice from partner Tulsa or, excuse me, the development entity that they no longer want to negotiate with us and the project is off. But ultimately, they’re the facilitators of the process, not the owners of it, right? And so I always learned, you know, in real estate, it’s about the buyer and a seller. And so we went to the seller, which is the city of Tulsa, right? And had a conversation with the mayor. And what I recognize is that there is a desire to come to a common ground. What is the middle? Right? Because we could have polar views on how we get this done, right? You know, the economic development entity and I might not see eye to eye, but where is the middle space in which both of our kind of initiatives and goals are achieved? And I’m finding that that’s actually sitting within the city of Tulsa, at the mayor’s level. And so, I am hopeful. We’ve had great conversations about moving the project forward. What are the ways in which we can do that and then what are the ways that we can create a lose-lose and not a win-win, right? Because we’re taught, okay, you want the win-win, we want everyone to win. Well, that’s not possible. How do I lose a thing that I want without changing the nature and character and the integrity of the project and how do they lose a thing that maybe they want in order to ensure that there is partnership on board, that we can move the project to become built? I believe in our administration, challenging as it is at the city level, I believe that the mayor is committed to getting this built and committed to ensuring that the legacy that he leaves is one of like, opportunity for the city of Tulsa. So, I remain hopeful. I’m optimistic by nature.

Eve: [00:29:14] So you don’t see it as a setback. You see it as another challenge, right?

Franchell: [00:29:18] Absolutely. Only challenges get….

Eve: [00:29:31] Only challenges, right. So, I’m going to shift gears a little bit because I met you at a really interesting event. It was a panel discussion that Freddie Mac, of all institutions, invited us to. And I learned a lot about Freddie Mac there. They’re actually a really amazing organization. And one of the things I learned about was that Freddie Mac has started a Develop the Developer academy.

Franchell: [00:29:46] Yes.

Eve: [00:29:47] And that you were the first graduate from their first cohort. So, I was astounded by that. I want to hear what it was like and how they found you.

Franchell: [00:29:59] Yeah, absolutely. So, like you said, Freddie Mac has been an incredible partner. And so, in 2019 going into 2020, Omaha actually launched the first Develop the Developer academy through a CDI called Spark. And because I’m from Omaha, Nebraska, still had really great ties there, learned of the program. I said, well, you know, can I participate? And was selected, went through an application process, was selected, and it went online because of Covid. And so that hybrid opportunity gave us an opportunity to just dig in. I mean, we learned about Proformas at length, the development team, the development process. Who are the, you know, what roles and responsibilities, how do you actually think about equitable neighborhood development? There were a series of panelists exams and through that process I really found the confidence to become a developer, a confidence to launch, right? Because much of my experience has come inside of institutions, nonprofit institutions, the Housing Authority, the municipality and so much of what I know is attributed to them. This is an opportunity for me to say, no, no, no, no, I know some things and support it with some additional learning and expanded networks and resources. I could do this for myself. And so, their whole focus is to create a cadre of really skilled developers of color and those who identify as women to be able to go into community and to begin transforming it.

Franchell: [00:31:36] And so we went through this class, you know, they laid out everything and it was just, um, it unlocked something in me around development to where I didn’t know that I shouldn’t go after an Evan-Fintube, right? Like I felt like, hey, I’m ready to launch. Like, I can figure it out, right? We can build it as it’s flying. And so given the opportunity, once I had graduated from there, I felt like there are so many folks right in Tulsa that are doing incredible work and given the same experience, would create incredible change. And so, I wanted to bring it to Tulsa. Talked with Freddie Mac, talked with Spark about mentorship and kind of helping us form it. And I was working at a CDFI at the time, and they literally were looking to create some type of developer’s academy, more so focused on nonprofits, But we were like, no, no, no, no, this is an opportunity to create like real generational wealth change. And so, we were able to launch it in Tulsa solely focused on BIPOC developers, developers that identify as women, folks from community that really wanted to launch into for-profit development.

Eve: [00:32:46] Yeah, it’s pretty amazing. Really impressive. So, you were obviously a star pupil because you are a star graduate because they invited you onto that panel, which was really pretty fabulous too. So, all of this is amazing. So, what’s next for you Franchell?

Franchell: [00:33:05] To continue moving forward, right? Like continuing to be good, like making change where I can, partnering on projects where I can, leading development projects. Um, you know, being a parent, like running a very solid business, like that’s really what’s next. And so, I’m thinking about ways in which that we can reframe Evans-Fintube. I’m looking at new opportunities in the landscape around redevelopment. Um, I do kind of want to go back to my roots a bit in terms of residential infill and incremental development. And so, kind of, going back to that block level two and four unit that I was doing in Omaha, just as a person living in community. I’d love to see the opportunity emerge where I could consult in other spaces around creating new developer academies. There is something about the mix of information and training and expanded networks and the opportunity to practice that, like really makes a difference in terms of the confidence of developers. You just need an opportunity to launch. And so, to be able to create that or help facilitate that in other communities, I would love that. So that’s really what’s next.

Eve: [00:34:26] Well, I can’t wait to see what’s next. And thank you so much for joining me today. I’ve really thoroughly enjoyed this, and I’ve thoroughly enjoyed meeting you. So, best of luck with the Evans-Fintube project.

Franchell: [00:34:38] Thank you. I appreciate that, it was wonderful connecting with you too.

Eve: [00:34:59] I hope you enjoyed today’s guest and our deep dive. You can find out more about this episode or others you might have missed on the show notes page at RethinkRealEstateforGood.co. There’s lots to listen to there. Please support this podcast and all the great work my guests do by sharing it with others, posting about it on social media, or leaving a rating and a review. To catch all the latest from me, you can follow me on LinkedIn. Even better, if you’re ready to dabble in some impact investing, head on over to smallchange.co where I spend most of my time. A special thanks to David Allardice for his excellent editing of this podcast and original music. And a big thanks to you for spending your time with me today. We’ll talk again soon. But for now, this is Eve Picker signing off to go make some change.

Image courtesy of Franchell Abdalla

ESG versus Impact Investing.

Impact investing is not ESG. And ESG is not Impact investing.

Is this news to you? Don’t worry, you’re not alone. Some of the smartest and most sophisticated people have trouble distinguishing between the two.

ESG stands for environmental, social and governance. It was the brainchild of governments wanting to bring these issues into mainstream investment decision-making. Impact investing, however,  was born in the private sector by philanthropists and investors who wanted to put a name to investments that  generated measurable social impact along with a financial return. 

Think of ESG as a framework and impact investing as a strategy.  The first focuses on integrating sustainability into existing investment strategies. The second is more hands-on, purposefully focusing on the actual impact or outcomes of a project or building. And this is what Small Change has adopted, with a purpose built impact index to measure the change that is being made.

If a building scores well in ESG, it might still make a negative impact. No weight is given to issues of the physical environment in ESG scoring.  Walk score, bike score, proximity to transit are nowhere to be seen. And yet these are the things that make buildings and cities comfortable and affordable to live in. 

It’s really pretty simple if you think about it. 

Image courtesy of Small Change