Chicago-based Clayco announced the retirement of its CEO, Russ Burns. Anthony Johnson, Clayco’s executive vice president and president of its industrial business unit, will succeed Burns as CEO.

Burns retired in December but will become Chairman of the Board of Advisors for the firm. “In his time as CEO, Clayco has rapidly expanded to become one of the largest builders of technical, mission critical projects in the United States, and we are beyond grateful for his contributions,” said Bob Clark, Founder and Executive Chairman at Clayco. “I am confident that Anthony will build on Russ’ legacy and position Clayco for even greater growth as a leader in the design-build industry.”

As CEO, Johnson will lead Clayco’s continued evolution as the premier vertically integrated design-build and development company in the country. Clayco also announced the launch of Clayco Compute, an integrated data center delivery business unit focused exclusively on the highly specialized construction of advanced technology centers.

Intersect Illinois announced Christy George as its new President and Chief Executive Officer. George most recently served as Executive Director of the Chicago 2024 Host Committee for the Democratic National Convention.

As President and CEO, she will harness her wealth of experience leading economic development initiatives, including her tenure as Governor JB Pritzker’s First Assistant Deputy Governor for Budget & Economy, to continue the momentum Intersect Illinois has built to elevate the state as a global destination for business location and expansion.

Before joining the Governor’s Office, George served as the Executive Director of the Illinois Commerce Commission and held several roles at the City of Chicago including Deputy Budget Director for Public Safety, Assistant Commissioner at the Department of Business Affairs & Consumer Protection, and Assistant Corporation Counsel in the Department of Law. George will step into the new role this November.

Courtesy of Denholtz Properties

Denholtz Properties CEO Katie Kurtz

Katie Kurtz is trading in glassy Manhattan skyscrapers for squat New Jersey commercial buildings.

Kurtz, who has been the chief financial officer and co-chief investment officer at Silverstein Properties since 2021, was named CEO at Denholtz Properties, a Red Bank, New Jersey-based firm that develops suburban apartments, offices and industrial buildings.

Steven Denholtz, the developer’s longtime CEO who has been with the company since 1983, will take the role of chairman, while his longtime partner, Stephen Cassidy, will shift from president to managing partner.

“It has been my honor to lead Denholtz Properties through our evolution over the past four decades,” Denholtz said in a statement. “As we look to the future, we are confident that Katie’s extensive experience and leadership will guide us in building upon our legacy while seizing new opportunities for sustained growth.” 

Denholtz Properties, which also has a regional headquarters in Orlando, has a $2B portfolio that ranges from an under-construction apartment building in Charlotte to a 49-acre medical office campus in Chappaqua in Westchester County, New York. Its portfolio includes holdings in New Jersey, New York, Pennsylvania, Georgia, Texas, Florida and Tennessee. 

The firm’s outgoing CEO was given the NAIOP New Jersey lifetime achievement award this year. The portfolio he built up is starkly different than Kurtz’s last employer, where she was in charge of managing the finances of the World Trade Center complex among other billion-dollar projects. Before joining Silverstein, she had stints at AR Global and The Carlyle Group.

But Denholtz and Silverstein do overlap in some regards: They are multigenerational family businesses and have expanded their companies into new states and business lines, including setting up debt funds.

Denholtz launched a $100M rescue capital fund earlier this year, and Silverstein Capital Partners has raised $5B since its 2018 inception while positioning the firm to take over major projects such as the Brooklyn Tower and the $1B Avenue Bellevue near Seattle. 

“Over the past several years, Denholtz Properties’ strategic expansion into new markets has driven significant growth in its assets under management,” Kurtz said in an emailed statement. “The current market presents substantial opportunities to further expand the reach, size and diversity of our portfolio while strengthening our capital base.”

Courtesy of United Bank

The exterior of United Bank’s new SouthPark office in Charlotte.

For commercial real estate professionals searching for a loan, the process of choosing a bank goes far beyond simply googling “banks near me.” It’s about finding a trusted partner with proven experience who can help CRE lenders get the capital they need to get deals done. 

This past St. Patrick’s Day, United Bank celebrated its 185th birthday. In the many decades since its founding, it has helped countless CRE borrowers purchase or refinance commercial properties, along with its personal banking and retirement services.

Today, United Bank is expanding, opening a 17.6K SF office in SouthPark in Charlotte, North Carolina, to serve as a central business hub for the D.C.-based bank’s local operations.

“This new office represents the growth that we anticipate going forward in Charlotte,” United CEO Richard M. Adams, Jr. said. “Since we came to Charlotte in 2020, it’s been one of our fastest-growing markets, and we’ve had a lot of success there. And we’re very bullish about the future.”

Courtesy of United Bank

United Bank’s new SouthPark office in Charlotte.

The new office brings all of the company’s lines of business under one roof — “commercial banking, consumer banking, mortgage lending, private banking and wealth management, allowing it to provide its customers with all its services from one location,” Adams said. He added that it’s a beautiful building, making it a great branding opportunity for United, and that the company is very optimistic about the future of Charlotte and the Southeast in general. 

Adams said that despite the many challenges the banking industry has been facing, United saw a lot of success in 2023 and is experiencing a strong 2024 so far. 

“A lot of our competitors are pulling back when it comes to lending,” Adams said. “Meanwhile, we’ve continued to lend. Our capital position is strong, our markets are strong, and while we’re appropriately cautious about this year, we’re more optimistic than most.” 

United Bank also sees opportunities for growth through mergers and acquisitions, Adams said. The bank has done 33 acquisitions in its history, including two in the pandemic, while M&A deals remained virtually nonexistent in the rest of the banking industry over the last few years, he said. 

“With our capital, our currency, our reputation, our relationships, we think that we’re one of the few banks that could actually do a deal in this environment,” he said. 

Courtesy of United Bank

United Bank’s new SouthPark office in Charlotte.

Adams said that high interest rates, bank failures and increased margin pressure have created challenges for the banking industry. In particular, while many people predicted that the start of 2024 would see some interest rate reductions, that has yet to manifest. Despite the issues, however, the banking industry remains resilient, Adams said. 

“Regardless of what happens to rates, regardless of what happens to the economy, the industry remains strong,” he said. 

Looking toward the future, Adams said there will be more consolidation in the banking industry as M&As rise, and further adoption of technology, beyond digitally depositing checks and online banking. 

“We saw the accelerated rise of digital banking with the pandemic,” Adams said. “Now, the focus is on how the industry can adopt AI in a positive way, and how we can best tackle cybersecurity.” 

Above all else, Adams said that he believes the banking industry will continue to flourish if United’s numbers are an indication. 

In 2023, United Bank was able to not only pay, but increase, its dividend to shareholders for the 50th consecutive year, making it what’s called a “dividend king,” Adam said. 

“There are not many dividend kings out there,” he said. “In fact, there are less than 60 companies that have increased their dividend for 50 consecutive years. And I think that says a lot about the way we approach our business. We’re very disciplined, very consistent and  resilient, and we will stay that way throughout any economic cycle.” 

This article was produced in collaboration between United Bank and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com. 

Mayor Brandon Johnson and World Business Chicago Vice-Chair Charles Smith announced that Philip B. Clement has been selected to serve as president and CEO of World Business Chicago (WBC).

“Philip B. Clement is an exceptional leader with a remarkable track record of driving growth, fostering innovation, and championing inclusivity,” said Johnson. “His commitment to authenticity, sustainability, and diversity will ensure that our city’s economic development efforts are equitable and impactful for all Chicagoans.”

Clement’s appointment follows the resignation of Michael Fassnacht, who took over as president and CEO of WBC in early 2021. Fassnacht left WBC earlier this year to serve as Clayco’s first-ever chief growth officer.

Prior to joining World Business Chicago, Clement served as Global Chief Marketing Officer at Johnson Controls. Previously, he spent 12 years as Global Chief Marketing Officer for Aon, and before that, he launched a number of tech companies and his own consultancy.

Join the leaders and dealmakers when they explore the most important topics and trends at Connect Midwest: Multifamily, Affordable, Student & Senior Housing Trends on June 4, 2024, at the W-Chicago, City Center Hotel, Chicago, IL. Register to attend to network with the best in the industry and sit in on discussions you won’t hear anywhere else. Early Bird Registration Ends April 19.

Jackson Hsieh will become the president and CEO of The Macerich Company on March 1, following the retirement of Thomas O’Hern after 30 years of service to the company. Concurrent with O’Hern’s retirement, president Edward Coppola will also retire from Macerich.

O’Hern will serve as an advisor to the Santa Monica-based company through June 30, to ensure a smooth transition. Hsieh’s appointment as president and CEO follows an extensive search process by the board with the assistance of recruitment firm Ferguson Partners.

Board chairman Steven Hash said, “Jackson is a seasoned real estate executive and he is an outstanding choice to succeed Tom. Most recently, Jackson was the president & CEO of Spirit Realty Capital where he led the successful merger of Spirit with Realty Income Corporation through an all-stock transaction valued at an enterprise value of approximately $9.3 billion.

“The merger with Realty Income followed Spirit’s successful sale of $4.7 billion in non-core assets, including the spin-off of approximately $2.9 billion in assets into a separate publicly traded company and acquired over $6.2 billion in retail and industrial assets to create a high-quality diversified real estate portfolio. Prior to Spirit, Jackson spent over 25 years in global lodging and real estate investment banking, having successful careers at a number of prestigious investment banks.”

Courtesy of Franklin Street

Franklin Street has appointed Matthew Harrell as CEO.

The founder and chief executive of Tampa-based Franklin Street is passing the leadership baton to one of his executives as the full-service commercial real estate brokerage plans further expansion in the Sun Belt.

Andrew Wright is stepping back from the top job at Franklin Street, the firm announced Monday, to be replaced by Chief Revenue Officer Matthew Harrell as the new CEO as part of a planned succession.

Wright is stepping back from day-to-day activity, but he said he will remain chairman of the board of directors and be involved in the growth of the firm moving forward. Franklin Street operates seven business divisions: investment sales, tenant representation, landlord representation, capital advisory, insurance, property management and project management. 

“We are very much aligned in our core values,” Harrell told Bisnow. “This has been a strategic plan for this transition for a number of years.”

Franklin Street was founded in 2006 and today has 300 professionals with offices in Tampa, Fort Lauderdale, Jacksonville, Orlando, Miami, Atlanta and Chicago and has conducted $7B in transaction value, the company said in a release. Under Harrell’s leadership, Franklin Street plans to continue its national expansion by looking to recruit brokers and acquire firms for all its business lines in high-growth markets, especially in Dallas, Houston, Austin, Nashville and Charlotte.

Last year, the firm’s revenues grew 50% to $1.43B, Franklin Street said in a release. Harrell said Franklin Street is particularly focused on growing its capital market services division in the Sun Belt.

“Capital markets is a strategic line of business that we feel can give the most opportunity to feed other lines of business in the long term,” he said. “But again, what we’re looking for is the people behind those businesses.”

Harrell was named chief revenue officer last year and was tasked with recruiting and merger and acquisition activities for Franklin Street. Prior to that, Harrell served as managing director of the firm’s insurance services division and a member of the board of directors since 2012.

“Over the past 13 years, no one has been as integral to Franklin Street’s growth, success and quality of culture as Matt Harrell,” Wright said in a press release. “There is unlimited potential for what we can accomplish in the coming years, and I am excited to see Matt lead us there.”

This series gets into the heads of the decision-makers of CRE, the people shaping the industry by setting investment strategy, workplace design, diversity initiatives and more.

Prevailing leadership philosophies have finally caught up to Clay Grubb.

Since taking the helm of Grubb Properties, his family-owned real estate firm, in 2002, he relied on consensus in making decisions.

That style of leadership ran counter to the image of the maverick real estate developer idealized in the 20th century, but Grubb, an alumnus of Tulane University and University of North Carolina law school, said in today’s corporate world, leaders who listen are valued and often make better decisions.

Grubb, now CEO and chairman of Grubb Properties, started working with the family business at the age of 12, collecting mortgage payments. Today, Grubb has more than $2B in acquisitions and development with projects in Atlanta, Charlotte, Winston-Salem, San Jose and, for the first time, New York City.

Grubb is the author of Creating the Urban Dream and last year raised a real estate fund to help rescue struggling live music venues across the Southeast.

Bisnow

Grubb Properties CEO Clay Grubb

Bisnow: Tell us about your leadership philosophy and what experiences, words of advice or mentors shaped it along the way.

Grubb: My leadership philosophy is based simply on teamwork. I believe it’s imperative that we listen to all perspectives. While it can be extremely taxing to take the time to make sure everyone is heard and to attempt to build consensus, the result is a far better solution, and the extra effort is worth it. Taking the time to make sure we have considered all possibilities and come to the best solution allows us to execute with conviction. I also believe it is important that everyone take care of their health and well-being first so that they can bring their best self to the office.

Bisnow: How has the role of CEO/business leader changed over time — especially when considering the early days of your career to now? 

Grubb: When I first became CEO in 2002, I was hesitant to make decisions without getting lots of feedback. Back then that was considered a weakness, but thankfully the business world has moved on from the days of maverick, go-it-alone CEOs. Today, inclusiveness in decision-making is considered a strength, and I think we’re all better off for it.

Bisnow: What will the role of CEO look like in 10 years?

Grubb: I think this trend toward inclusiveness will continue. Over the course of the next 10 years, technological innovation will make collaboration even easier, bringing CEOs closer to the troops. As a result, organizational charts will continue to get flatter.

Bisnow: Was leading a company always a goal for you? If so, why?

Grubb: Honestly, leading a company was not a goal for me. I am a numbers person by wiring and grew up doing deals and searching for the best investments. I had no idea how rewarding it would be to successfully lead a team and watch team members flourish.

Bisnow: What has been your biggest mistake as a leader?

Grubb: Early in my career, my biggest mistakes were often related to overpromoting folks before they were ready for the next step. Those actions cost me some great potential team members. I had a wonderful team member and I promoted them, before they were ready, to a position of leadership. This person was not prepared for leadership and did not appreciate that leadership came from listening and not directing. Eventually, I had to let them go. Had I been more self-aware as a coach, provided better tools for training, and moved slower on the promotion, they would likely be a valuable team member today.

Bisnow: Has your thinking changed about the workplace between 2019 and today? How? What will your office strategy be moving forward?

Grubb: Despite the pandemic and its disruptions, my thinking related to the office has been pretty consistent since 2019. I believe the most productive companies will continue to have the majority of their teams in the office. Sometimes, the best ideas come out of the unexpected meetings in the hallway, and this is difficult to replicate over Zoom. That said, I think work schedules will become more flexible.

Courtesy of Grubb Properties

Grubb Properties CEO Clay Grubb at the Gwendolyn Harrison Smith office building dedication at the University of North Carolina, Chapel Hill in 2020.

Bisnow: There is a massive conversation underway regarding advancing more people of color and women into the C-suite. What are you doing to address those voices and that movement within your own organization?

Grubb: This conversation is seriously important and long overdue. The CRE industry is far behind in bringing women and people of color into senior management, and there is a lot of work to do both at the board and corporate levels. Our board of directors currently comprises four men and three women, including one woman of color. In selecting new board members, we consider numerous factors beyond strictly real estate experience, including integrity, judgment and breadth of experience.

We strive to maintain gender and racial diversity to ensure that all voices are heard. But, that said, we have a long way to go to achieve our goals. For our workforce, we’re taking steps to improve our hiring practices to provide a diverse pool of candidates for each position.

For example, we’ve increased recruiting at HBCUs and are partnering with internship programs devoted to underrepresented talent. We also focus on creating promotion opportunities for employees traditionally underrepresented in the industry so they can be supported in developing their careers once they join the company.

We also do annual compensation reviews to ensure we provide pay equity regardless of gender or ethnicity.   

Bisnow: What do you think about the recent focus on sustainability and climate change? Is it overblown? Insufficient? Is your company tackling climate change in any way or taking it under consideration in your planning?

Grubb: Our industry needs to do much more to emphasize sustainability and [to] prepare, address and respond to climate change. Climate change exposure is one of our company’s five pillars of resiliency that we consider when evaluating site selection for our properties. The risk in these markets is not only from a direct hit from a severe storm, but also insurance rate increases due to this increased risk.

We try to create the most environmentally friendly properties practical and pursue sustainable practices in design, construction and development, and operations. We do this not only for the environmental benefits and efficiencies, but also because our residents demand it.

I’m proud that every single Link Apartments community has earned a green designation. Our most recent community, Link Apartments Linden in Chapel Hill, North Carolina, earned a National Green Building Standard Silver Certificate, and we’re going to work to achieve or exceed that level with all new multifamily buildings.

Bisnow: What is something CRE gets wrong in your eyes?

Grubb: As I mentioned, CRE needs to become carbon neutral or as close to it as possible. Climate change is critical and according to our government sources, commercial real estate generates 16% of all emissions in the U.S. It’s imperative that we work together to reduce this.

Courtesy of Grubb Properties

Grubb Properties CEO Clay Grubb at a Habitat For Humanity site along with the future owner of the home.

Bisnow: What asset class or location will perform best over the next five years? Why?

Grubb: America is facing a terrible housing crisis with a severe lack of housing — more than 3.8 million homes short of what is needed to meet demand, according to Freddie Mac. Years of underbuilding have resulted in a lack of supply, while the large millennial and Gen Z generations are driving growing demand.

This imbalance is likely to continue over the next decade. Multifamily communities — particularly ones that serve the “missing middle” — will do well. This will be particularly true in urban and infill suburban neighborhoods that are close to transportation options, cultural amenities, and resilient employers such as universities and medical centers.   

Bisnow: What book, article or TedTalk meant the most to you? Why?

Grubb: [Albert] Ratner, the CEO of Forest City, gave a talk about his commitment to his family, his business and his community and how he split his time equally among the three. At a time of crisis for the company, he abruptly left a business meeting to attend a community meeting to everyone’s astonishment. That community meeting ended up resulting in a connection that actually saved the business.

It was a really inspiring story that has encouraged me to make sure we do not lose sight of our priorities in life just because things get difficult.

Bisnow: What is your all-time favorite TV show? Why?

Grubb: While I don’t really watch TV anymore, growing up I loved Sanford and Son. Redd Foxx was a master of the one-liner.

Bisnow: How do you spend your Saturdays?

Grubb: I get outside as much as possible on weekends. My Saturdays are often filled with hiking, mountain biking or potentially a water sport like skiing, kiteboarding or surfing. I usually follow that up with a nap at some point, a nice dinner and — if I’m lucky — the day is capped off with some great live music.