New York development and management firmn, The Kalikow Group, along with longtime development partner EYC Companies and equity partner Breakers Capital Partners (BCP), has closed on the sale of the Shade Tree multifamily community in Johns Island, South Carolina.
The sale price was $42.25 million. The buyer was an affiliate of Wicker Park Capital Management, LLC located in Savannah, Georgia. The brokers were Tai Cohen and Marc Robinson with Cushman & Wakefield.
“When we first envisioned Shade Tree we knew it would be a terrific development in a desirable place to live and we are glad that others have recognized it too,” said Greg Kalikow, Executive Vice President of Kalikow Group. “We know Wicker Park will continue to maintain Shade Tree with the same care that we have.”
The development was built in 2016 as a 248-unit, multifamily community, located on 9.2 acres. “The greater Charleston area has experienced explosive growth over the past ten years with much of the new affordable multifamily being built along the I-26 corridor farther and farther from downtown Charleston, the area’s beaches, boating and coastal lifestyle,” said Ellis Coleman, President of EYC Companies. “Wicker Park Capital Management obtained this high-quality asset at a discount to replacement cost,” said Tai Cohen, Director of the Cushman & Wakefield Southeast Multifamily Advisory Group. “Well-located in the transforming Johns Island submarket and the high barriers to new development throughout Charleston, the property is positioned to enjoy long-term rent growth and return on investment.”
Real Estate Royalty: Up Close with a Fourth-Generation Kalikow
If Greg Kalikow’s name sounds familiar, it should. The Kalikow family rank among New York’s oldest surviving real estate dynasties.
The Kalikow family launched into real estate in 1927 when Greg’s great-grandfather Joseph started developing buildings in Brooklyn, setting the foundation for an empire that would amass an impressive number of properties countrywide.
Today, as VP of both the Kalikow Group and KaledManagement, Greg (pictured, left, with his father and Kalikow Group president EdKalikow) oversees the management of the firm’s properties and provides legal counsel on developments. Since Greg joined the family business fulltime 5 years ago, the Kalikow family has expanded the empire, investing and curating relationships outside the fiercelycompetitive Big Apple for opportunities as more buyers scramble for inventory.
The Manhattan market always offers opportunity, Greg tells Bisnow, but it’s a “you- snooze, you-lose” type of party. “Every property’s has 20 buyers ready to jump,” he says.
In addition to 1031 buyers, foreign investors from China and Europe, who see Manhattan real estate as a safe haven, have been driving building prices, says Greg, putting down huge money with little regard for short-term yield, and only the goal of finding a home for their equity.
To adapt to these market conditions, the Kalikow family has used their big-cityexpertise to profit from markets outside of New York, engineering off-marketdeals through their network of local development partners. This is where being a Kalikow has its benefits, Greg says.
In these outer markets, the Kalikow family works with joint venture developer partners with access to off-market projects ranging from retail to apartment development to mixed-use lot development. The Kalikow Group contributes most of the equity and act as GP and the JV partner assumes the role of developer. Through this, the family has been able to form a variety of partnerships, acquire many off-market properties – especially in the Carolinas, Florida and Texas.
In the rare occasion when a developer partner has gone bankrupt, the Kalikow’s expertise and skill has allowed them to finish the job in order to protect the equity invested by the company and of their investors.
Greg’s ability to employ strategicguile comes in part from growing up in the business.
Greg has been learning the family business since he was 13. Whether it was coming into the office or using a jackhammer to demolish bathroom tiles on a jobsite, Greg tells us, the fourth-generation Kalikow was learning all he could about his family’s business. Though he was never pushed to join the family dynasty, Greg confirms, his passion always lay in learning the real estate business and building upon the efforts of the previous Kalikow generations.
Though the family’s made their presence felt throughout the country, the Kalikow Group recently made a big splash on the New York scene with acquisitions of a six-story multifamily building at 68 Richardson Street in Williamsburg, Brooklyn, a four- story mixed-use building at 517 Second Avenue and a 60-unit development site in Flatbush.
This past March, the Kalikow Group sold 113-117 Elizabeth Street in Little Italy. Originally purchased in 2011 for $12.6M, the property sold for $26M.
“When it comes to currently underwriting and assessing opportunities, the Manhattan market hasn’t met our overall expectations when it came to rate of return because of the new rent laws,” Greg tells Bisnow.
That’s not to say the family hasn’t been involved in New York City real estate at all. The Kalikow family has long touted the importance of their third-party property management strategy when it comes to urban properties. Ed Kalikow believes that property management would always guarantee security, regardless of changes in the market. “In addition,” Ed tells Bisnow, “the ability to understand rent-stabilization allows the Kalikow Group to maximize the potential of their assets.”
The family currently manages the base building at 711 West End Avenue, which will soon have high-end condominiums developed on the higher floors.
So what does Greg see for the future of New York real estate and the Kalikow dynasty? Greg is cautious, stating that the new rent laws change many assumptions about the market.
“With stricter rules, the tactic of buying buildings with the ultimate goal of buyingout rent-stabilized and rent-controlled tenants will be much harder and almostimpossible until these laws are completely understood, challenged, or changed again,” Greg says.
For now, he is more focused on keeping up the Kalikow name and selectivelylooking to acquire more properties across the country, both in and outside of New York.
And the Kalikow legacy? “The thing about reputation is that it can be built up over a matter of decades,” Greg says, “But it can be completely destroyed in a matter of seconds or days.”
***
But what about the man behind the name? Here are some things to know about Greg.
Causes: Greg donates extensively to the Michael J. Fox Foundation and the United Jewish Appeal of New York
Family: Greg married his wife Alison last October, and the two are taking the time to enjoy their marriage before considering any kids
Favorite Vacation Spot: Cape Town, South Africa, Greg and Alison went there on their honeymoon, and Greg found the place “absolutely incredible.”
Favorite Restaurant: Piccola Venezia in Astoria, Queens; the restaurant has been a Kalikow family staple for decades
Favorite Movie:Goodfellas
Favorite Book:The Great Gatsby, “The books was a lot better than movie,” Greg says.
AD Real Estate buys Kalikow’s Nolita buildings for $26M
Kalikow and Waterbridge bought properties in 2011 for $12.6M
Multifamily investor AD Real Estate bought a trio of walk-ups in Nolita today for $26 million after making an aggressive offer to sellers Kalikow Group and its partner, Joel Schreiber’s Waterbridge Capital, which paid about half that price when they bought the buildings three years ago, The Real Deal has learned.
The Great Neck-based firm closed on the five-story buildings at 113-117 Elizabeth Street this afternoon in the off-market transaction.
“It is truly significant how fast this area is changing,” said Khashy Eyn, whose firm Platinum Properties was involved in the deal. “Nolita is rapidly edging south towards Little Italy.”
Platinum’s Cash Bernard referred AD Real Estate to Town Residential’s Joe Messina and Stephen Ferrara, who represented the buyer on the deal. Town broker Alex Heydt represented the seller.
Kalikow and Waterbridege bought the buildings, which hold 30 rental units, in 2011 for $12.6 million, marking Kalikow’s first New York City deal in about two decades. Greg Kalikow, a vice president at the firm, said the company increased the NOI on the rent roll about 30 to 35 percent over the past few years.
“Our original plan was to hold onto the asset for the cash flow,” he said. “However, [AD Real Estate] came in and made us an aggressive offer to the point where our investors and ourselves were comfortable divesting with the asset.”
Correction: An earlier version of this article incorrectly stated Platinum Properties broker Cash Bernard’s role in the deal. Bernard referred buyer AD Real Estate to Town Residential. He did not represent the buyer in the deal.
Kalikow Group division plans 10-story Upper West Side condo building
NEW YORK CITY – Kaled Management, an arm of the Westbury, N.Y-based firm Kalikow Group, filed plans today for a 10-story apartment building at 711 West End Avenue, also known as 306 West 95th Street, on the Upper West Side, according to city documents.
The 124,600-square-foot property would hold 65 condominium units and be constructed on top of the existing six-story rental property on the site. There will be a second entrance off 95th Street for residents of the new building, architect Ray Dovell told The Real Deal.
The current structure was built in the 1950s and spans 192,000 square feet. The site offers 352,000 buildable square feet, records show.
Additional permits were filed today for structural and mechanical work for the new property.
Plans show a recreation room on the first floor. Platt Byard Dovell White Architecture is serving as the architect of record.
A representative for Kaled could not be immediately reached for comment.
The Kalikow Group partnered with an investment fund formed by Massey Knakal Realty Services and RiverOak Investment to buy a Williamsburg rental building in September, as The Real Deal reported.
GTIS Partners , a New York private-equity firm, has acquired nearly 2,200 home sites in Texas and Florida on the cheap as part of a splurge on raw land that began in March.
Near San Antonio, the firm teamed up with LGI Homes to buy a 93-acre parcel of raw land zoned for 393 houses, part of a larger development called Luckey Ranch. The seller was Kalikow Group, a Westbury, N.Y., real-estate management company. GTIS said it paid less than $1 million for the San Antonio lots. A Kalikow official declined to confirm the sale price.
GTIS said it also paid $8 million, or about 17% of the previous sales price, for 1,800 home sites near Tampa, Fla., in the 580-acre Grimsely Ranch project, from a bank that purchased the land in 2006 for $52 million.
Tom Shapiro, GTIS’s president and chief executive, said the company is focusing on buying discounted land in all-cash deals and holding on to it until the economy recovers.
“I’m not smart enough to know when exactly we’ll see a housing recovery, but I know that if you pay a nickel on the dollar for land in good markets, and you do it unlevered, you’re going to come out OK,” Mr. Shapiro says
La Grange, GA The Kalikow Group, on behalf of KEP LaGrange, LLC, and EYC Companies, held a ribbon cutting ceremony to celebrate the grand opening of Woodland Trail, a newly completed 236-unit, garden-style apartment complex on 20 acres.
The event brought together prominent local government officials including Mayor Bobby Traylor, city councilman Nick Woodson, Troup country manager Todd Tentler and Troup county commissioners Buck Davis and Richard English.
Edward Kalikow — Owner & President of Kaled Management
Kaled Management, a leader in the property management field, overseeing a portfolio of more than 6,500 residential apartments in and around the boroughs of New York City, has its roots in a family real-estate business founded in the 1920’s.
“I grew up in the business,” says Ed Kalikow, Kaled’s owner and president. “I used to follow my father to construction sites and worked on jobs in the summer as a laborer to get hands-on experience.”
After graduating from Syracuse University School of Management and then Hofstra Law School, in 1978 Kalikow joined his father, Sidney, in managing a small portfolio of properties, as well as building, rehabilitating and converting residential properties in Flushing and Bayside, Queens and Great Neck Long Island.
Through the 1980s, the business expanded its management services, and then in the early 1990s, after his father passed away, Kalikow began investing in property development throughout the country. “We found a niche of developers in strong growth markets who were good developers but equity poor,” he recalls. “We leveraged our expertise and money into a lot of diverse markets, under the theory that you don’t want to have your eggs all in one basket.”
“It was a very good run for us,” he adds, “We raised about $100 million in private equity and funneled in out into 30-plus projects in Florida, Raleigh-Durham, Houston, San Antonio and shopping centers in Staten Island and Connecticut.”
While Kalikow still invests in new development here and there — he’s got a multi-use project in the works in Carey, North Carolina — Kaled is primarily a management company today. In the last several years, the company, says Kalikow, “has tried to bring the perspective of owner/management to third parties,” a formula that has helped to grow its management portfolio to include more than 63 buildings.
“We manage everybody’s property as if we own it,” says Kalikow, a task facilitated by new technology. “We can remotely read the operations of your boilers from our laptops, for example. I’m able to sit home and know how many times the boiler is cycling.”
Not that he doesn’t still get out in the field. “Our supers know that I can pop up at any time — ten o’clock at night or on a Saturday morning. I’m famous for that. It keeps them on their toes. Everything should look right 100 percent of the time.”
As a result of his and his team’s fastidiousness, says Kalikow, “we’ve established a sophisticated clientele — institutions or third parties that were tired of the empty promises given them and want someone who knows how to operate and work in this environment. There’s a lot of business we don’t get because we won’t compromise our standards for any price.”
An ABO member since he started in the real estate business — “I used to go to the meetings with my dad,” he recalls — Kalikow is active in several foundations and charities.
In honor of his father, he started the Sidney Kalikow Endowed Scholarship Fund at Hofstra Law School, where his son Gregory is in his second year; he is active with the United Jewish Appeal and Shalva, an organization that works with special needs children in Jerusalem; and he has been supporting and serving on foundation boards for the Parkinson’s Disease community for 25 years.
Kalikow presently site on the planning board of the village of Old Wesbury, where he resides. “It’s an opportunity,” he says, “for a developer to see things from the other side of the table.”
Article featured in ABO Developments
Associated Builders & Owners of Greater New York, Inc.
Edward Kalikow, president and CEO, The Kalikow Group
Ed Kalikow answering tomorrow’s questions today
By JASON TURCOTTE
At the helm of a fourth generation family business, Edward Kalikow, president and CEO of The Kalikow Group, was exposed to the industry since birth and, in today’s market, he’ll need that experience to take care of some unfinished business.
While a lack of available credit has crippled the housing sector, Kalikow said the nature of residential development has changed dramatically. People were once buying properties “like beer at a frat party” at 1-2% cap rates but now, activity has dried up.
“I think the word condo has become banned – it’s sort of a dirty word now,” said Kalikow, who joined the owner-management company three decades ago. “And we’ve reached an era where . everything is subject to negotiation.”
But as new development falls by the wayside, opportunities are emerging – particularly in the country’s most distressed markets. Kalikow said lenders tomorrow will begin looking to competent developers to fix the problems of today, as more and more projects go unfinished. And he’s positioning himself to be their “answer man.”
“When you’re given lemons, you make lemonade … ” Kalikow said. “We think we can be equally successful in helping some of these stalled projects get completed.”
Under Kalikow’s guidance, the. company has amassed a portfolio of2,000 co-ops and rental units. Since the early 1990s, the firm has also offered joint venture equity to developers .around the country.
The goal, says Kalikow, is to spread risk by investing equity with developers in markets with growth opportunities nation-wide.
But before eying real estate opportunities, Kalikow was giving heavy consideration to a career in law.
After graduating from Syracuse University’s School of Management in 1975, he went on to Hofstra Law School. But, being exposed to real estate since birth, he quickly learned that the apple doesn’t usually fall far from the tree.
“I’ve been exposed since I was in the womb. As early as I can remember, I followed my father around the construction sites,” said Kalikow, who was raised in Hewlett, N.Y.
As a teenager that exposure became hands-on, as he began working on construction and repair projects for the company founded by his grandfather. While he suspected returning to the
family business one day, his father’s poor health spurred the decision to break into the real estate industry sooner than expected. Now, with Kalikow’s son and nephew employed there too, the company is four generations strong.
While beginning with the management division of the business, Kaled Management, Kalikow took up development before too long and still recalls his first project, Barclay Condominium, a 36-unit project in Flushing. He described the task as a learning experience but has discovered that the same can be said for nearly everything he’s done – from subdivisions in Texas, to retail development~ in Connecticut, apartment projects in North Carolina and everything in between.
“The interesting thing about this business is I learn something every day,” Kalikow said. “You would think that after 30 years you would know everything there is to know, but that’s not the case in this business.”
And with a few dozen projects under his belt, there were a number of lessons learned. It’s witnessing the creation of a tangible product through collaboration of multiple parties he finds most enjoyable. His proudest moment came after completing the 1989 development of Parkridge in Bayside, N.Y. The gut rehabilitation project resulted in the conversion of a garden apartment complex into nearly 200 condominium units.
Currently he’s spearheading a mixed use project in North Carolina that is now eight years in the making but truly represents a labor of love. “It’s taken a lot out of me, but it’s proven to be very rewarding,” he said.
In an economy that has presented so many fiscal challenges to owners, tenants, developers and investors, loving what you do is paramount to success.
Kaled Management, which broadened its scope in the late 1980s to include third party management, remains focused on helping tenants survive tough fiscal times and from an internal standpoint, Kalikow’s overarching focus is the “preservation of capital.”
Kalikow’s affiliations include the Associated Builders and Owners of Greater New York, the Association for a Better Long Island, the Realty Advisory Board and the International Council of Shopping Centers. In addition, he serves on the planning board for the town of Old Westbury, N.Y., which he calls “an interesting experience to sit on the other end of the table.”
Currently a resident of Old Westbury, he enjoys spending his free time with his family,’ jogging ‘and golfing.
Kalikow Group enters $3.038m development joint venture
La Grange, GA The Kalikow Group on behalf of KEP Le Grange, LLC has invested $3.038 million into the Woodland Trail Associates joint venture. The purpose of the JV is to develop and construct a 236-unit, garden-style apartment complex on 20 acres. Construction financing of $17 million will be provided by M & I Bank.
“In these challenging economic times when so many jobs are disappearing, it’s refreshing to be involved with a project that provides housing associated with job creation,” said Edward Kalikow, president and CEO of The Kalikow Group. “Kia will be building moderately-priced vehicles, which will work in today’s economy. The Kalikow Group will be supplying affordable quality rental housing to its employees that will live in proximity to the plant.”
The project will provide homes for some of the thousands of workers to be hired by Kia Motors Corp. and its suppliers. The auto maker is building a new $1.2 billion auto manufacturing facility to be open by the end of this year. The plant will be seven miles from the Woodland Trails property. The two-million s/f facility on 3,300 acres will manufacture 300,000 cars a year and the plant and suppliers are expected to create approximately 6,000 jobs in the west Georgia and Alabama region.
Grace Park, a joint initiative between Long Island, N.Y.-based The Kalikow Group and Raleigh, N.C.-based EYC Companies, opened in September in Morrisville. Located at the intersection of Morrisville-Carpenter Road and Davis Drive, the center offers 50,000 square feet of upscale retail and more than 180 residences. Tenants include Anytime Fitness, Buffalo’s Wings & Rings, Quiznos Sub and Starbucks Coffee.
HFF Checks Out $22M Shopping Center Deal
The New York office of HFF (Holliday Fenoglio Fowler, L.P.) announced that it arranged a $22.5 million refinancing for Expressway Plaza Shopping Center, a 94,026 square foot shopping center anchored by a King Kullen Supermarket in Staten Island, New York.
HFF managing director Robert Delitsky and real estate analyst Todd Newman worked on behalf of the borrower, Empire Realty Associates, LLC, to secure the 10-year, fixed-rate leasehold mortgage through Signature Bank.
The borrowing entity is comprised of The Kalikow Group of Westbury, New York, led by Edward Kalikow, and Feldco Development Corporation of New Canaan, Connecticut, led by Barry Feldman.
Completed in 1998, Expressway Plaza Shopping Center is occupied by 11 tenants and is located on Richmond Avenue in the Bulls Head neighborhood of Staten Island. The property has four buildings and is anchored by a 60,413 s/f King Kullen Supermarket.
“Ownership is currently undertaking an 8,500 expansion of the shopping center as demand for retail space in Staten Island is very strong,” said Delitsky.
Grace Park, a joint initiative between Long Island, N.Y.-based The Kalikow Group and Raleigh, N.C.-based EYC Companies, opened in September in Morrisville. Located at the intersection of Morrisville-Carpenter Road and Davis Drive, the center offers 50,000 square feet of upscale retail and more than 180 residences. Tenants include Anytime Fitness, Buffalo’s Wings & Rings, Quiznos Sub and Starbucks Coffee.
For Grace Park Mixed-Use Master Planned Development in Morrisville, North Carolina
GRACE PARK BREAKS GROUND IN MORRISVILLE
MORRISVILLE , N.C. – Raleigh, N.C. based EYC Construction has broken ground on Grace Park, Morrisville’s first mixed-use development. Located at the corner of Morrisville Carpenter Road and Davis Drive, Grace Park will incorporate 180 residential units and 50,000 square feet of retail space. Residential and retail space will be available in the spring of 2008.
More Info:
www.thekalikowgroup.com/projects.daviscommons.html
Kalikow Group brokers sale of Maple Village Apartments for $12.8m
Pell City, AL Edward Kalikow of The Kalikow Group has completed the sale of Maple Village Apartments to Sycamore Development LLC, for $12.8 million. The 160 unit rental garden apartment complex on 12 acres was constructed in 2005 by K & S and their Joint Venture partner Ellis Coleman of EYC Investments.
Edward Kalikow of the Kalikow Group, and Eugene Shalik, of Shalik Realty Ventures, announced the sale of Trexlertown Plaza Shopping Center, in Trexlertown PA., to Cedar Shopping Centers, Inc., of Port Washington, New York for $33.9 million.
K & S Trexlertown, LLC (Kalikow and Shalik) formed a partnership with Polimeni International LLC., located in Garden City, New York, to purchase and develop the property in 1997.
Trexlertown Plaza is a 241,625 square foot shopping center and it’s 35 adjacent acres. It sits next to 338,692 square foot Trexlertown Mall which Cedar acquired in December 2005.
The Kalikow Group and Shalik Realty Ventures form K&S Sevilla, LLC.
Phoenix, AZ – Edward Kalikow of the Kalikow Group and Eugene Shalik of Shalik Realty Ventures has formed K&S Sevilla, LLC for a new venture. K&S provided equity in the amount of $3.15 million.
K&S has teamed up with developer / partner James Noteware of Noteware Development, LLC. The Joint Venture has acquired 5.14 acres of zoned and entitled land located on the west side of 7th St. just north of Thunderbird Rd. The JV will construct thereon a 66 garden-style apartment condominium complex. Construction has begun. The projected sell out is $26 million.
• The Kalikow Group, working with developer Eugene Shalik, formed K&S Magnolia Springs I LP for a venture in New Braunfels, Texas. K&S should provide $2.9 million in equity for the project.
Long Island based Real Estate Developer Edward Kalikow of the Kalikow Group and Eugene Shalik of Shalik Realty Ventures have formed K&S Lake Wales Associates, LLC, for their new venture in Lake Wales, FL. K&S is providing equity in the amount of $4,700,000.
K&S have teamed up with Stanley Markofsky of ERLW, LLC to form Eagle Ridge Associates, JV. The JV has purchased 73 +/- acres of land located on Chalet Suzanne Road in Lake Wales in Polk County, FL for $7,620,000.
The purpose of the JV is to obtain all necessary entitlements, develop infrastructure inclusive of interior road system, install and provide required utilities inclusive of water/sewer as well as amenities, for 406 town-home lots to be known as Eagle Ridge.
K&S Realty Ventures LLC, a partnership between local developers Edward Kalikow of the Kalikow Group and Eugene Shalik, ended 2005 with projects stretching from Las Vegas to Florida.
In Vero Beach, Fla., it built and closed 81 single-family homes in the Legend Lakes subdivision. It also sold three parcels totaling approximately 200 acres, which are expected to yield 535 units.
Teaming up with Ellis Coleman of EYC Companies LLC, K&S is also developing multi-family projects in Alabama and the Carolinas. By mid-2006, 160 apartments should debut in Pell City, Ala., while a 192-unit complex should begin to open in Mebane, N.C., mid-year.
In Las Vegas’ booming Southern Strip, K&S joined forces with developer James Noteware to develop a 356-unit luxury condo complex on 10 acres. Construction should start by the third quarter.
Ross & Cohen, LLP announced that Dennis A. Konner and Joseph Mascia represented K&S Mesa Verde, LLC in the acquisition of a $15.6 million South Strip Las Vegas property.
The 10-acre site was purchased by a joint venture between K&S Mesa Verde, LLC, controlled by Edward Kalikow of The Kalikow Group, and Noteware Mesa Verde Investment, LLC, controlled by James Noteware, with plans to build a 356-unit residential condominium complex on the site. Construction of the units is projected to cost over $82 million.
The planned condominium complex will sit approximately two miles south of the official “strip” in Las Vegas. It will contain 356 units, each of which will sell at a calculated average price of $330,000 or $275 per s/f, competitive with other similar properties located in the area. The complex will be geared towards young urban professionals or families looking to live close to the action of central Las Vegas.
The South Strip, generally considered the gateway to Las Vegas for Southern Californians, is a rapidly developing area. The $500 million South Coast Casino, a 150,000 s/f convention center, a new equestrian center and three mid-rise condominium complexes are all currently under construction there. Plans for further development on the South Strip include another $500 million casino and an 800,000 s/f mall/retail center. Las Vegas as a city has seen a growth of non-entertainment jobs in the past decade and with that has come an increased demand for housing.
According to Edward Kalikow “We are excited about financing our first project in Las Vegas and working with Jim Noteware. Hopefully this will be the beginning of many projects for us in this market.”
John N. Brewer, Esq., of Kummer, Kaempfer Bonner & Renshaw, represented Noteware Mesa Verde Investment, LLC. K&S’ counsel was Stephen B. Yoken, Esq. of Snell & Wilmer, LLP. Acquisition financing of $11 million was provided by Compass Bank.
50th Anniversary Edition
The Kalikow Family — Great Real Estate Families
By Edward Kalikow
When Joseph Kalikow began his real estate career in the 1930’s, the dynamics of the business were much less complicated than they are today. There were no REIT’s or collateralized mortgages; there were no bundling of mortgages or defeasance experts. What existed was a time in which honesty, integrity and relationships were valued as much as the success that was amassed by the accumulation of wealth.
During the past 80 years much less has changed in the real estate industry and fortunately the characteristics embraced by Joseph Kalikow live on today. Joseph’s sons – Harold, Nathan and Sidney continued in the tradition of their father building an empire of over 10,000 units of solid, multi-family rental units that are still producing income, and are homes to many New Yorkers today. In their footsteps followed their son’s – Peter, Richard and myself – Edward Kalikow. We followed different paths when the brothers went their separate ways in the 1970’s. Each of us has been successful in his own arena of the real estate industry. Today, I welcome the involvement of the fourth generation in the family business started by Joseph.
Honesty, integrity, charity and devotion to family are traits that have served and continue to serve the Kalikow family well. Today my management firm Kaled Management Corp., (www.kaled.com) manages in excess of 5,000 rental, co-op, condo and HOA units in the New York metro area. We continue to own 2,000 units built and acquired by Sidney over the decades.
Seeking opportunities in growth markets, the newest portion of my firm – The Kalikow Group (www.thekalikowgroup.com) – has over the past ten years provided equity capital to form Joint Ventures with local developers throughout the country. We have raised in excess of $60M that has enabled us to participate in over $250M of real estate ventures. Some of our markets include: New York, Pennsylvania, both coasts of Florida, Raleigh-Durham, North Carolina, Charleston, South Carolina, Houston, Texas, Pell City, Alabama and Las Vegas, Nevada.
Relationships drive the success that has followed. Practically all of our developer partners continue to do business with us. Earnings per share or the vagaries of the capital markets do not motivate us. These ‘constraints’ which some view as opportunities inhibit my ability to deal with real estate the way Joseph did. One must ‘kick the tires’, get dirty and have strong relationships. Today it would be very difficult to build a building based on a handshake the way Joseph did.
The dynamics of the market place are constantly changing. Where my son Gregory and my nephew Jordan choose to take the organization in the future is not yet known. However, embodied with the fundamental concepts instilled in them by me, as taught by my father Sidney which was taught to him by his father Joseph, I expect the Kalikow name will continue to be a shining star in our industry.
I wish to thank Real Estate Weekly for nominating our family on their 50th anniversary as one of the great real estate families. We wish them much continued success during their next 50 years.
Kalikow Group Saddles Up To Take On The Texas Market
Edward Kalikow and Eugene Shalik of K&S Realty Ventures, LLC, based in Westbury NY are working on the following projects:
K&S Sterling Lakes Iowa will acquire 270 +/- acres of land in Brazoria County, Houston, Texas and develop 716 +/- improved residential buildings lots. All the lots have been sold in advance to national and regional builders under lot takedown agreements. This project is part of a master planned development of 1,101 +/- acres projected to contain 3,200 +/- homes. This project will be their second Joint Venture with Land Tejas Companies in the Houston Market.
K&S Verona Estates project, also known as Waterstone Lakes, is a new 240 +/- acre lakefront community located in St. Lucie County, Florida. This project will contain 720 +/- residential buildings lots in five sections. The community will have five distinctly designed sections with lot sizes and homes that can be marketed to different homebuyers. K&S have contracted to purchase the lots on two of these five sections, which will consist of 176 town-home sites as well as 146 single family sites. The project is expected to commence by the end of the year. KB homes a national builder, shall be developing the three remaining sections consisting of 398 +/- homes. This project is a Joint Venture with Skymark Real Estate Investments.
The New York office of Holliday Fenoglio Fowler, L.P. has arranged a $23.785 million refinancing for South Terrace at Auburn Apartments, a 328-unit, Class A multifamily apartment complex in Durham, North Carolina.
HFF managing director Robert Delitsky worked on behalf of the borrower, Auburn Apartments, LLC, to secure the ten-year, fixed-rate securitized loan through the New York City office of GMAC
Commercial Mortgage Corporation, a conduit lender.
The borrowing entity is comprised of The Kalikow Group of Westburh, New York, led by Ed Kalikow, and EYC Companies of Raleigh, North Carolina, led by Ellis Coleman. HFF arranged the construction loan in 2001, which was then converted to a permanent loan through GMAC Commercial Mortgage Corporation.
The Kalikow Group moves ahead with Florida developments
K&S Realty Ventures, whose principals include Westbury-based real estate investor Edward Kalikow and Eugene Shalik, said several new housing developments in Florida have met with early success.
In Fort Myers, K&S officials said the venture’s Forest Lakes project, which is currently under construction, has already sold out. The development consists of 248 town homes set to be completed by September. To date, 71 units have been handed over.
In Melbourne, a joint venture between K&S and Skymark Real Estate Investments is being finalized and will result in acquisition of lots to build 346 town homes.
And in Edgewood, a K&S development known as Coral Trace is nearing completion. The 200-unit single-family home development is nearing completion, with two lakes already in place as well as water, sewer and drainage systems. Sales began this month.
In related news, K&S and its joint venture partner Ellis Coleman of EYC Companies, Inc. have recently completed construction and placed a permanent loan on Auburn Apartments, a 328-unit apartment complex in Durham N.C.
The K&S and Coleman team are also working on the development of a 64-unit residential community on James Island in Charleston, SC. Site work is complete and sales are set to begin in March.
The Kalikow Group intends to purchase 103 acres of land and build infrastructure for 260 single-family lots on 83 of the acres in Mebane, N.C.
Naples, Fla. – Bellagio at Cypress Lakes, a $70-million, luxury, resort-style, 330-unit community now under construction here, will make its debut in February, said Harold L. Tomlinson, chairman and president of Parkland Development Corp., the Boca Raton-based firm that is building the project.
Bellagio’s expansive 6,800-square-foot clubhouse will also open at that time. Overlooking one of the two man-made lakes that distinguishes the tropically landscaped property, the clubhouse will encompass a fitness center and massage studio, a 2,500-square-foot free-form swimming pool, poolside sports bar and Internet café, as well as an elegant clubroom with a 25-foot ceiling and resident-accessible kitchen, a fully furnished executive business center, a movie theater and children’s play room.
“These recreational amenities afford residents of our resort-style community an exceptional opportunity to experience a thoroughly enjoyable and entertaining vacation without ever having to actually leave the premises,” said Tomlinson. He added: “Parkland Development is bullish about Florida. We’re presently seeking prospective sites throughout the state, every one intended to invoke an enviable resort lifestyle.”
When fully completed in mid-2005, Bellagio will embrace 15 three-story residential buildings, with each structure containing a total of 22 one-, two- or three-bedroom residences.
Warwick, RI. – The New York office of Holliday Fenoglio Fowler, L.P. (HFF) has arranged an $8.25 million permanent loan for a 114,500 s/f Sam’s Club warehouse store.
Managing director Robert Delitsky worked with Edward Kalikow, president of Kalikow Yaphank Development Corp., to secure the fixed-rate, serivced loan through ING Investment Management Company. Kalikow Yaphank Development Corp. is a division of Kalikow Group of Westbury, N.Y.
Sam’s Club is located along Rte. 2. The property was originally developed as a Pace Membership warehouse in 1990 and was converted to a Sam’s Club in 1993.
HFF operates 17 offices nationwide, and in combination with affiliate HFF Securities L.P., is a real estate investment banking firm.
HFF offers clients a full range of capital solutions and services including debt, equity, financial advisory, investment sales, note sales and loan servicing. Since 1998, the firm has completed close to $88 billion in transactions in all markets and property types.
Kalikow involved in Houston development
Edward Kalikow, president of Westbury-based development firm The Kalikow Group, has entered into a joint venture for the residential development of a 287-acre parcel in Texas.
The joint venture consists of Kalikow and Eugene Shalik and their partners Al Brende and Courtey Grover of Land Tejas Companies, based in Houston. The joint venture – Westheimer Lakes North Associates – is moving ahead with the $32 million residential development in West Houston.
The subdivision in West Houston will be used for the development of a 1,138-unit, single-family-home community. To date, Kalikow said all of the lots have been pre-sold to two regional builders, D.R. Horton Homes and Legacy Homes.
Kalikow spokesman Aaron Siegel said the firm is the equity partner in the joint venture. The land was acquired a year ago for $5.5 million. Site development commenced in July and is scheduled to conclude in five to six years.
Kalikow Group expands in warmer climates
Edward Kalikow and Eugene Shalik of the Westbury-based Kalikow Group, in a joint venture with Stanley Markofsky of Fort Lauderdale-based Skymark Real Estate, are developing six new residential projects in the Fort Myers and Vero Beach, Fla., regions. The projects will total about 1,240 units.
This isn’t the first time the groups have worked together. They joined forces also on the Legend Lakes project, an 81-lot subdivision based in Vero Beach, which is 95 percent sold, and Forest Lakes, a 248-townhome development in Fort Myers, which has sold 100 units already, and those homes aren’t even built yet.
In St. Lucie, Kalikow and Skymark are working on a development for sale of 176 villas and 146 single-family homes. In Vero Beach, they’re working with a 22-acre site for the development and sale of 100 single-family homes.
In Edgewater, a similar development is being pursued on a 64-acre site, expected to yield 200 single-family homes. In Vero Beach, one project involves a 90-home development; for another, the companies jointly acquired 85 acres, where they plan to build 168 homes.
Edward Kalikow and Eugene Shalik of The Kalikow Group along with their Joint Venture partner Stanley Markofsky of Skymark Real Estate, based in Fort Lauderdale, have teamed up again to develop six new projects in the Fort Myers and Vero Beach, Florida areas totaling in excess of 1,240 units.
Kalikow, Shalik and Markofsky based on
their previous success in their Legend Lakes project and Forest Lakes have partnered again for five Florida deals.
The Kalikow Group is looking forward to these new deals and their continued success with Skymark Real Estate and in the Florida market.
KALIKOW GROUP AND PARTNER EYC COMPANIES NORTH CAROLINA
Westbury based developers Edward Kalikow of The Kalikow Group along with Eugene Shalik and their partner Ellis Coleman of EYC Companies, based in Raleigh, North Carolina, are once again pleased to announce a new Joint Venture — Mebane Associates.
The Joint Venture recently went to contract to purchase 138 acres in Mebane, NC, located in a prime area between US 70 and York Loop just north of Interstate 40/85, which is located in Orange County. The city of Mebane will annex this site.
Currently, negotiations are in place between local developer Bill Sprang, president of Sprang Development Co., located in Chapel Hill, NC, and Ellis Coleman, of EYC, for the development of 367 single family homes in the $100,000 to $300,000 range. Negotiations are also ongoing for the development of 100 “flat” and 48 3-story condominium units on the site. In addition, there are 4 acres that can be developed for commercial use. We have already been granted approval by the Mebane City Council for the development project.
Kalikow branches out in New Hampshire
A 70,000-square-foot Shaw’s supermarket has opened its doors at Manchester Commons, a 162,891-square-foot shopping center that traces its ownership to Edward Kalikow, president of the Westbury-based Kalikow Group.
The retail outlet is in Manchester, N.H., and was developed and owned by an entity created by Kalikow and Eugene Shaliks known as K&S Manchester Commons, which is involved in a joint venture with Barry Feldman, of New Canaan, Conn.-based FELDCO Development Corp.
Kalikow said Shaw’s occupies 70,000 square feet at the shopping center. For the Shaw’s portion of the center, the permanent loan was secured through Royal Insurance Co. in the amount if $17.5 million and was obtained with the assistance of Robert Delitsky, of Holiday Fenoglio and Fowler, and William Lustig, of Lustig Capital.
The center’s remaining 92,891 square feet, 73,000 of which has been pre-leased already, are under construction, and the space is expected to open for business in the summer of 2004.
Kalikow Group has busy October
The Westbury-based real estate development company Kalikow Group had a busy October, as it continued to make progress on projects off Long Island.
Three of its projects are partnerships with Skymark Real Estate Investments of Ft. Lauderdale.
In Ft. Myers, Fla., Kalikow and Skymark are teaming in a joint venture on a 39-acre project. Plans call for the development of 248 townhomes that will have an average sales price of $118,000.
In Ontario, Kalikow is working with Skymark on a 100-lot subdivision known as Arbourwood Estates. The project, located in the Village of Shanty Bay, is scheduled to be constructed in two phases. The initial phase will consist of 23 lots, with the second phase consisting of the remaining lots.
In Vero Beach, Fla., Kalikow and Skymark
are working on a residential development of 81 improved lots that are part of a new 163-lot single-family subdivision known as Legend Lakes Estates. The 81 lots are scheduled to be built, sold and delivered by the spring of 2007. The project began last fall, and 18 homes have been delivered.
In Charleston, S.C., Kalikow has announced a joint venture with EYC Investments, of Raleigh, N.C. A planned development will consist of 64 residential units – a mix of 26 townhomes and 38 single-family homes – on 14 acres on James Island. Prices range from $175,000 to $180,000 for townhomes and single-family homes will range from $199,000 to $249,900.
And in Morrisville, N.C., Kalikow has purchased 30 acres on which it is planning to build a shopping center measuring about 160,000 square feet. The development will be broken down into two phases. Phase I will involve 83,946 square feet, and Phase II will be 75,000 square feet.
Manchester, NH – The Kalikow Group, a partner in the entity K&S Manchester Commons, LLC, located in Westbury, NY, has announced a joint venture of their firm along with two other top firms – Feldco Development Corp., Roslyn Heights, NY and Retail Development Corp, Simsbury, Conn., to form K&S Manchester Commons. The Joint Venture has acquired 15 acres in Manchester, NH., and plans to build an open-air upscale, 160,000-square-foot center. The Center is expected to open late next year and will be anchored by a 70,000-square-foot Shaw’s Supermarket.
Houston, TX – The Kalikow Group, a partner in the entity K&S Falcon Ranch, LLC, located in Westbury, NY along with their joint venture partner Ali Ebrahimi of
Ersa Grae Corp., located in Houston Texas, have announced that Phase II of their project is well underway. On the 265-acre site, which has been subdivided into 800 building lots, Phase I has been completed with 149 lots sold to developers and Phase II is well underway with 76 lots already sold and 105 remaining.
Clayton, NC – The Kalikow Group, a partner in the entity K&S Parkside Village, LLC located in Westbury, NY along with their joint venture partner EYC Investments, located in Raleigh, NC, have completed their Parkside Village Apartment project consisting of 136-unit residential development on a 12-acre parcel. LaSalle Bank is providing the permanent financing in the amount of $9 million on the property.
Kalikow Group announces new projects, web site
The Westbury-based Kalikow Group’s partnership with AWBE Real Estate Inc., of Fort Lauderdale, Fla., has acquired 59 single-family improved lots in the 100-unit residential subdivision called Arbourwood Estates.
The Partnership, K&S Arbourwood Properties will sell the units at $235,000 to $394,000. Sales will begin this spring.
In Manchester, N.H., Kalikow is a partner in the entity K&S Manchester Commons LLC, a joint development venture that includes two other development firms – Feldco Development Corp., of Roslyn Heights and Retail Development Corp., Simsbury, Conn.
The Group has acquired 15 acres in
Manchester, with plans to build an open-air upscale, 160,000-square-foot retail center expected to open late next year. It will be anchored by a 70,000-square-foot Shaw’s Supermarket.
Additionally, Kalikow recently launched a new web site, www.kalikowgroup.com, to reflect the company’s increased investment activity over the past few years.
To date, Kalikow has raised $35 million of equity capital, which has funded projects valued in excess of $350 million throughout the country.
Kalikow’s property management arm, Kaled, is maintaining its web site at www.Kaled.com.
NATIONAL TRANSACTIONS FROM KALIKOW GROUP
The Kalikow Group, a partner in the entity K&S Manchester Commons, LLC, located in Westbury, N.Y., has announced a joint venture of their firm along with two other top firms – Feldco Development Corp., Roslyn Heights, N.Y., and Retail Development Corp., Simsbury, Conn., to form K&S Manchester Commons. The joint venture has acquired 15 acres in Manchester, N.H., and plans to build an open-air, upscale, 160,000 square foot center. The center is expected to open late next year and will be anchored by a 70,000 square foot Shaw’s Supermarket.
The Kalikow Group and their joint venture partner Ali Ebrahimi of Ersa Grae Corp., located in Houston Texas, have announced that Phase II of their project
is well underway.
The Kalikow Group and joint venture partner EYC Investments, located in Raleigh, NC, have completed their Parkside Village Apartment. LaSalle Bank is providing the permanent financing in the amount of $9 million on the property.
The Kalikow Group and joint venture partner EYC Investments, located in Raleigh, NC, have begun development of their project of a 30-building, 328-unit apartment complex. Financing in the amount of $22 million was secured through GMAC Commercial Mortgage with a value of the entire complex in excess of $30 million.
Kalikow Group Pursuing deals in Southern markets
The Kalikow Group, a Westbury-based development firm, is charging ahead with $89 million in new development.
The Company is working with local affiliates on four projects that target both the residential and retail markets in the South and Southwest.
In Clayton, N.C., Kalikow is working with Clayton-based EYC Investments on its K&S Parkside Village project, which has $9 million in permanent financing. The Parkside Village project is a 136-unit residential rental development that sits on 12 acres.
Construction of the Parkside Village facility was completed in November, and it currently enjoys an occupancy rate of 92 percent.
LaSalle Bank is providing the financing in the form of a 10-year loan that has an interest rate of just over 7 percent. Robert Delitsky of Holiday Fenoglio Fowler acted as broker.
In Houston, Kalikow affiliate K&S Falcon Ranch announced that 112 lots of the 265-acre Falcon Ranch residential development have been acquired.
That joint venture, which includes Kalikow and Houston-based developer Ersa Grae Corp., has completed the infrastructure installation needed to create 791 building lots valued at $24 million.
So far, 112 lots have been pre-sold to five Houston-based development firms. To date, more than 80 sales have been closed since the site’s opening in March. The Falcon Ranch project marks Kalikow’s first development in the Houston market.
In Durham, N.C., Kalikow is again working with EYC in an effort to build a 30-building 328-unit apartment complex valued at $30 million. A construction loan of $22 million was provided for the project by GMAC through Holiday Fenoglio Fowler’s Delitsky. The Project is slated to be completed by the end of May.
On the retail front, Kalikow officials said the firm has received preliminary approval for the development of Davis Commons, a 231,000-square-foot shopping center in Morrisville, N.C. Groundbreaking is set for this summer for the $20 million project, which will be spread across 30 acres.
Kalikow President Edward Kalikow said he is confident that several leases with “nationally recognized” tenants will be signed prior to the summer groundbreaking.
To date, Kalikow has developed more than $210 million in residential and commercial projects nationwide.
Kalikow Group continues brisk development pace
Westbury-based Kalikow Group is working on several residential projects outside the Long Island market and selling off its interest in the Shurgard public storage facility on Route 110 in Melville.
On the Residential side, Kalikow is set to deliver the first 150 lots of 790-lot subdivision to builders at its Falcon Ranch project in Houston.
In Clayton, N.C., Kalikow’s Parkside Village Apartments, an $8 million, 136-unit complex on 12 acres that opened in March, is 60 percent leased. Also in North Carolina, the firm plans to close and start construction on a 328-unit apartment
complex in Durham that will be know as Auburn Apartments.
In Florida, Kalikow’s project with Morrison Homes, a wholly owned subsidiary of British-based George Wimpey, know as Cypress Springs in Orlando, Fla., has closed on 100 of the projects 133 lots. And in Naples, Fla. Kalikow has closed on 100-arce parcel for the development of 590 multifamily and single-family units.
On Long Island, Kalikow is selling off its interest in its Shurgard public storage facility. Upon closing, the firm will have completed its off-balance sheet financing for Shurgard, a 680-unit complex that is currently 95 percent occupied.
Kalikow investing in projects in South, Southwest
Westbury – An affiliate of the Kalikow Group has invested $95 million in five real estate deals involving more than 1,400 residential units in the South and Southwest.
“We’ve found a niche,” Kalikow Group President Ed Kalikow said of projects in North Carolina, Florida and Texas carried out by the group’s three-year-old affiliate, K & S. “There are a lot of good developers around the country with good projects but without the equity to bring them off.” That’s where K & S comes in. It provides the equity financing to get the projects off the ground and in return gets a piece of the profit.
“Our business strategy is to look for good projects and develop strong ties with developers in growth areas that are cash poor,” he said.
The projects include K & S Parkside Village, an $8-million, 136-unit rental housing project on 12 acres in Clayton, N.C., financed by the SouthTrust Bank.
A second North Carolina development involves 328 Units of attached housing in Raleigh valued at $ 24 million with the same developer, Ellis Coleman. “One job leads to the next,” Kalikow said.
Meanwhile, in Florida, K & S Arlington Lakes is in the process of acquiring 100 acres in Naples for the development of 225 single-family homes and 280 multifamily units.
“There has been tremendous growth in that area,” he said, “and we are just ahead of the (development) curve.” Kalikow said he plans to sell off the single-family lots and build apartments on the remaining land.
“There has been tremendous growth in that area,” he said, “and we are just
ahead of the (development) curve.” Kalikow said he plans to sell off the single-family lots and build apartments on the remaining land.
K & S International Drive, which has acquired 20 acres of commercially zoned land for $4.1 million that is targeted for a time-share development. “We bought that land out of bankruptcy,” said Kalikow. “It was an opportunistic purchase that we’ll probably flip for $6.5 million in a year or so.”
In Houston, K & S Falcon Ranch has acquired 265 acres of land that has been subdivided into 800 building lots. Kalikow, in a partnership with local developer Ali Ebrahimi of Ersa Grae Corp., acquired the land for about $10,000 an acre, or $2.7 million, and is working towards the installation of utilities and other infrastructure. Funding for the project was provided through First Continental Investment Co.
“We’re investing an additional $10,000 per lot on top of the purchase price to install water, roads and sewers,” he said, noting that the land had already been subdivided into 800 building lots, all of which have been pre-sold to four local developers for between $30,000 to $40,000 per lot.
Meanwhile, on Long Island, Kalikow has teamed with Garden City developer Vince Polimeni on a $1.5 million redevelopment of 1000 Franklin Avenue, in Garden City.
Also on Long Island, K & S Jericho, recently signed a 20-year ground lease for a new Wendy’s restaurant on Jericho Turnpike in Huntington, just east of Route 110.
The new Wendy’s was constructed on part of a 1.5-acre parcel acquired by K & S Jericho two years ago. Kalikow said 6,500 square feet of space remains undeveloped at the site.
Kalikow affiliate enters into Wendy’s lease
Edward Kalikow and Eugene Shalik of K & S Jericho, an affiliate of the Westbury-based Kalikow Group, announced the signing of a 20-year ground lease for the new Wendy’s restaurant on Jericho Turnpike in Huntington, just west of Route 110.
The new, 84-seat location, which also features a drive-though, opened in December. Nelson & Pope were the engineers for the project, with Rich Ignatow providing landscape design. Willard Stillman of Kalikow Development Associates served as broker for the ground lease.
The new Wendy’s was constructed on
part of a 1.5-acre parcel acquired by K & S Jericho two years ago. Kalikow said there is still 6,500 square feet of space available at the site for further retail/commercial development.
“This site had all the ingredients to meet Wendy’s select criteria for a successful new restaurant, including adequate parking, drive-through capability and generous space to accommodate our standard design,” said Wayne Tomlin, Wendy’s director of corporate real estate. “Additionally, the Jericho Turnpike location is a high-traffic area along a well-traveled east-west corridor that features abundant existing retail, as well as a strong lunchtime population from local businesses and nearby residential communities.”
Land banking enterprise keeps builders in black
WESTBURY – For home building firms looking to keep the balance sheet on kilter, they may want to consider land banking.
So says local developer Edward Kalikow.
The Kalikow Group acquires land on behalf of builders and developers and simultaneously enters into sales or option agreements with these companies for sale of the land at set prices, with specific scheduled future closing dates. The concept, Kalikow says, is an attractive financing and financial reporting alternative for national and regional builders, many of whom are publicly traded on national exchanges.
“Land banking offers public companies numerous compelling benefits, including off balance-sheet financing, thereby preventing the dilution of the company’s earnings per share,” Kalikow said. “It also gives these companies a great pipeline to development opportunities that they might not have identified on their own.”
The financial benefits are of paramount importance to these public companies, which are under tremendous scrutiny, Kalikow says. Off-balance-sheet financing enables these companies to keep non-performing real estate and related debt financing off their balance sheets until they actually close on the
property.
“Typically a builder or developer doesn’t close on a property until ready to commence construction,” Kalikow said. Working with the Kalikow Group enables the company to keep that non-performing property off its balance sheet until the last possible moment.”
Land banking also enables a builder/developer to control its future land requirements and keep deals in the pipeline without taxing its own line of credit. “We buy and hold the land, which frees the developer up to use its own credit line for other purposes,” Kalikow says.
In the three months since the new enterprise was conceived, the Kalikow Group’s new land banking division has
closed on two major parcels totaling $4 million on behalf of major, nationally recognized residential developers. Both are located in East Orlando, Fla., a residential area just south of Kalikow Development’s Waterford Lake Project.
The first parcel is a 175-acre site adjacent to Waterford Chase on behalf of Centex one of the largest single family home builders in the United States, and the most active home developer in Florida. When complete this parcel will yield 400 homes and 10 acres of commercial real estate.
The other parcel is a 133-lot subdivision in the Cypress Springs development on behalf of Morrison Homes, a subsidiary of George Wimpley, a British-based, publicly held company. Morrison Homes is another of the country’s largest home builders, selling and closing approximately 2,000 homes in 1997 alone. In this case, Kalikow’s group will take on the infrastructure development while holding the property for Morrison Homes. Morrison Homes will take down lots quarterly over the next three years.
According to Kalikow, the company acquires property for land baking in two principal ways. First, it acquires property already under control by the builder/developer. Kalikow takes assignment of the builder’s existing purchase/option agreement, close on the land at the actual cost and simultaneously enters into a sales/option agreement with the builder for a future closing date.
The second manner is by assembling, optioning and acquiring residential and commercial land located in growing geographic areas characterized by strong demographics. Once in hand, the property is marketed to select builders/developers in that area, after it has been taken through the approval process.
“Our company’s core philosophy is to provide exceptional service to the industry based on our experience as owners and developers,” Kalikow said. “This land banking enterprise is and extension of that philosophy, and one we believe will be tremendously successful in the coming years. It is a win-win scenario, both in assisting builders and in providing returns to our investors.”
KALIKOW TARGETS REITs FOR LAND BANKING
Kalikow Group is looking to expand its land-banking business to include deals with multifamily and retail real estate investment trusts, according to Edward Kalikow, principal. The Westbury, N.Y., Development company’s land banking arm, which was established late last year, acquires potential sites on behalf of public companies and simultaneously enters contracts or options to sell them to those companies within a specified time period, Kalikow explained, nothing that REITs otherwise are weighed down when they purchase nonperforming assets. “The operation is very mom-and-pop right now, but there’s potential for it to grow,” he said, adding that current capital constraints imposed by investors and financiers alike make now an opportune time to expand. “The REITs are responding positively since they want to be able to secure development sites now without going to the capital markets.”
The company has decided to expand its focus to the multifamily and retail sectors
because of its familiarity with those property types, Kalikow said. In addition to purchasing land on behalf of a public company, Kalikow Group acquires sites that it feels could be marketed as a land-banking play, he noted. When the company targets sites for subsequent re-marketing and land banking, it looks at growth markets with low unemployment and solid infrastructures, he said, citing Orlando, Atlanta, Dallas and Houston as examples. And although Kalikow Group has concentrated on single-family sites thus far, it will apply the same site criteria in seeking acquisitions for multifamily and retail REITs, he noted.
Kalikow Group leverages its acquisitions by roughly 50-60% with mortgage financing from regional lenders. The company contributes 10-15% of each acquisition’s cost itself and taps its network of individual investors for the remainder of the equity, Kalikow noted. Kalikow Group, which generally holds its investments for two to four years, targets internal rates of return of more then 20%.
Kalikow, Polimeni purchase Garden City office property
The Kalikow Group in a joint venture with The Polimeni Group has purchased a three-story, 36,000 square-foot commercial office building in Garden City, NY. Edward Kalikow, president of The Kalikow Group, made the announcement.
“1000 Franklin represented a unique investment opportunity in a thriving business community,” said Kalikow. “Garden City has been primed as the next hot Long Island market, presenting companies with the best the area has to offer. This is the first of what should be many commercial office property
investments for us in the Long Island market and beyond.”
The property, located along the area’s primary commercial corridor, was purchased by the joint venture for $3.5 million.
The Kalikow Group headquartered in Westbury, NY, invests in and develops commercial and residential real estate projects around the country. In the last two years, the company has developed three major shopping centers and numerous other projects, including Waterford Lakes in Orlando, Fl.
Kalikow signs Home Depot to anchor Florida outlet
Home Depot is currently in contract with Waterford Commercial Land Joint Venture, and affiliate of Westbury-based Kalikow Development Associates and MPI Group of Toronto, to develop a 110,000-square-foot prototype store and a 25,000 square foot garden center as the first tenant of a new 68 acre retail development in the evolving East Orlando community of Waterford Lakes.
The new 450,000-square-foot center will be located directly across the street from the 1.1 million square-foot Waterford Lakes Town Center, the largest open-air shopping center in Florida.
The announcement of Home Depot’s signing was made by Edward Kalikow, president of Kalikow Development Associates. The Depot is under contract for 14 acres and will be the anchor tenant for a center.
“The demand for new retail development in East Orlando has been overwhelming,” Kalikow said. “The signing of Home Depot, shows the strength of this growing community to attract quality, national retail tenants.”
Kalikow Development Associates is the real estate development arm of the Kalikow Group.
Wallingford CT. – The joint venture between Edward Kalikow of Kalikow Development Corp,. Barry Feldman of Feldco Development Corp. and Gene Beaudoin of Retail Development Corp. recently completed and opened Wallingford Fair, a 116,000 s/f shopping plaza. The shopping center is 96% leased. Roster of tenants includes anchor Shaw’s Supermarket. The announcement was made by Edward Kalikow, president of Kalikow Development Corp.
The partnership purchased the property in July 1997, beginning construction on the shopping plaza immediately thereafter. Wallingford Fair’s anchor tenants include the 65,000 s/f Shaw’s Supermarket, a 25,000 s/f Sears Paint and Hardware store and a 15,000 s/f Petco, the national chain of pet stores. Other tenants include a Hallmark Card Store, Which leased 5,800 s/f and negotiations are currently underway for 4,600 s/f of retail space which will bring occupancy up to 100%.
Wallingford Fair is located between New Haven and Hartford and situated on Rte. 5, a well-trafficked and major commercial thoroughfare.
Construction financing was arranged by People’s Bank of Hartford and permanent financing was arranged by Royal Indemnity Co. M&J Associates and Swain Retail Leasing Inc. acted as leasing agents for the shopping center. The general contractor for the shopping center was Gil Construction Co., and the architect on the project was Wax Ferraro & Associates.
In addition to Wallingford Fair Shopping Center, Kalikow Development Corp. and Feldco Development Corp. and Feldco Development Corp. have developed shopping centers throughout the Tri-state region including Expressway Plaza, a 94,000 s/f shopping center in Staten Island and Newington Fair, a 140,000 s/f shopping center in Newington.
Kalikow Group Forms New Land Banking Division
Westbury, N.Y. – Developer and investor The Kalikow Group, based here, formed a land banking enterprise it says will put the group’s “experience, contacts and ability to close transactions” to use in helping developers acquire land and to enable them to use off-balance-sheet financing.
“Land banking offers public companies numerous compelling benefits, including off-balance-sheet financing, thereby preventing the dilution of the company’s earnings per share. It also gives these companies a great pipeline to development opportunities that they might not have identified on their own,” said Edward Kalikow.
The Company will acquire properties in two principal ways. First, it can acquire properties already under control by the builder/developer. Kalikow takes assignment of the builder’s existing purchase or option agreement, closes on the land at the actual cost and simultaneously enters into a sales/option agreement with the builder for a future closing date.
Or Kalikow can assemble, option and acquire residential and commercial land. Once in hand, the property is marketed to select builders and developers in the area after it has been taken through the approval process.
In the past three months since the new enterprise was conceived, The Kalikow Group’s new land banking division has closed on two major parcels in east Orlando, Fla., totaling $4 million. The first parcel is a 175-acre site on behalf of Centex Corp., to yield 400 homes and 10 acres of commercial real estate. The other parcel is a 133-lot subdivision in the Cypress Springs development on behalf of Morrison Homes. Kalikow will take on the infrastructure development while holding the property for Morrison Homes, which will take down lots quarterly over the next three years.
Off-balance sheet financing allows the public companies to keep non-performing real estate and related debt-financing off their balance sheets until they actually close on the property. “Typically, a builder or developer doesn’t close on a property until ready to commence construction. Working with the Kalikow Group enables the company to keep that non-performing property off its balance sheet until the last possible moment,” says Kalikow.
A third generation company, Kalikow invests in and develops commercial and residential properties nationwide. It describes itself as an “opportunistic investor, specializing in situations that require strong guidance and instinctual talent.”
Kalikow involved with Staten Island retail project
Officials at the Westbury-based Kalikow Group have announced that the 94,000-square-foot Expressway Plaza Shopping Center on Staten Island has reached 100 percent occupancy only two months after its official opening. The property is owned by Empire Realty Associates of which the Kalikow Group is one of the principals.
Empire, a joint venture between Kalikow and Feldco Development Corp., which purchased the eight-acre site in 1996 and immediately set about developing the site which features various retail
outlets and is anchored by a Waldbaum’s supermarket.
Construction and permanent financing for the project was arranged by the Bank of New York.
Other shopping centers developed by Kalikow-Feldco arrangement include the 117,000-square-foot Wallingford Fair and 140,000-square-foot Newington Fair, both located in Connecticut.
Waterford Lakes, an 1800-acre mixed -use development in Orlando, has closed residential land sales valued in excess of $12 million since July 1997, according to company officials.
Recent major purchasers of land at Waterford include Centex Homes, General Homes, Lennar Homes, Morrison
Homes, Landstar Development, M/I Schottenstein and Contravest.
Edward Kalikow, president of Waterford affiliate Kalikow Development Associates Ltd. of New York, says the development’s value is clear “When you consider the names of the quality home builders who have signed on as developers.”
Kalikow Group plans to add additional 200,000 s/f to Trexlertown Plaza
Trexlertown, PA. – The new owners of Trexlertown Plaza are planning to double the size of the 212,000 s/f shopping center, adding another 200,000 s/f on 40 vacant acres at the 70-acre site.
Leasing of the expanded space is already underway, according to principals of Trexlertown Plaza Associates, a joint venture of the Polimeni Organization and the Kalikow Group, which acquired the shopping center last September.
“We’ll design and build the new phase to suit the requirements of our pre-construction tenants,” says Edward Kalikow president of The Kalikow Group. “We are excited about the diverse possibilities for the vacant land.” Potential uses include retail, hotel, apartment and senior care facilities.
“With much development in the pipeline
in this region, Trexlertown Plaza presents an excellent opportunity for retailers and other businesses to establish themselves, or open a new branch, in an area of upscale households.”
Major tenants at the nearly fully-leased Trexlertown Plaza include: Redner’s Warehouse supermarket; Ames, the discount department store; Sears Hardware; a Rite-Aid drugstore; and a Subway sandwich shop.
Trexlertown Plaza Assoc. recently financed the shopping center through Holliday Fenoglio L.P., in the amount of $13.1 million.
Built in 1990, Trexlertown Plaza is on U.S. Rte. 222 east of Rte. 100 The shopping center is adjacent to the 270,000 s/f Trexler Mall and the world headquarters of Air Products.
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