Tee It Up with Grady Brame, Executive Vice President at Stirling Properties
We all know that Grady is a huge golfer. But did you know that he has played among some of golf’s greats, including Phil Mickelson, Justin Leonard and David Duval? He’s played in three U.S. Amateur competitions with Tiger Woods. Although they weren’t actually playing against one another, according to the scorecard, you could say that Grady beat Tiger!
Grady has played amateur golf around the country and says “the more success you have, the more opportunities you will receive.” He believes much of what he has learned on the golf course is applicable to the commercial real estate (CRE) industry. So we thought it would be fun to sit down with him to get a little insight on both.
Where does your passion about golf & real estate come from?
“The love of golf runs in my family! My father was a scratch golfer, and his father played too. We have a long list of relatives that play. Both of my sons share a love of the game, and my oldest son has taken it to a professional level.”
Grady’s attraction to golf is fueled by the thrill of competition and the determination to get better. That same logic drives his love for real estate, and got him started in the industry.
“I was attracted to Stirling Properties because it was exciting and a new opportunity for me—commercial real estate was fun! I loved the idea of building new projects. The industry was challenging, but we were successful. Over the years, I’ve learned so much, and I feel that my experience really adds value to our Stirling team. Golf has given me personal achievement and fulfillment, Stirling Properties has given me professional fulfillment.”
In your opinion, how are golf & commercial real estate similar?
They are both competitive. I compete on the golf course to win, and I compete at the office to make a project or a real estate deal successful.
In golf, you’re competing against fellow golfers, yourself and the course. In CRE, you compete against other developers contending for the best sites and negotiating with tenants on leases to get the best deal to make a project prosperous. In golf and CRE, the outcomes—or score—will tell you if you’re on the right track. At Stirling Properties, we separate ourselves from the competition by continually striving to improve.
What golf etiquette can you apply to commercial real estate?
- Respect: Golf is an honorable game. You play by the rules, not because there is a referee or umpire enforcing them, but because it’s the right way. At Stirling Properties, we’ve always done things the right way. We treat employees, clients and tenants with respect. We’ve always been honest, held ourselves to high ethical standards, and never take shortcuts. Now, that’s paying back in dividends. A famous golfer once said, “In golf as in life, it is the follow through that makes the difference.”
- Managing Expectations: I consistently see golfers on the course expecting to beat their last score, or play better than their handicap on every hole. They set unrealistic expectations, and are usually disappointed. We always want to be the winner and put our best forward, but we need to remember not to oversell our position for investors, employees or lenders. People rely on us for projections and budgets. Predicting the future with absolute accuracy is like hitting a hole-in-one. But we have a great team in place that has been able to manage the process without overselling or setting unrealistic expectations.
- Mastering the Fundamentals: Sports psychologist, Dr. Bob Rotella noted, “A golfer has to train his swing on the practice tee, then trust it on the course.” Stirling Properties has stayed relevant and ahead of the competition for more than 40 years, because we are good at what we do. We trust our skills and instincts. We extensively evaluate every project at hand for the best possible outcomes. Sometimes, it’s about quality, not quantity.
- Control the Controllable: We will never have absolute control. In golf, there will always be the threat of wind, an ill-fated bounce or some little imperfection on the course that we have no control over. The same is true in CRE. You have to be adaptable. Do your best to manage what you can’t control, but build in contingencies for projects or deals so that if you do have a bump in the course, the deal can still work.
Any advice for young people entering the CRE industry?
For anyone new to Stirling Properties—or the industry—my first suggestion is to listen and learn. You can learn a lot more from listening to others than talking on your own. You can acquire much from the people that have experience in this industry, both how to succeed and how to fail. Learn from their triumphs and mistakes! A lot of professional golfers have an entourage of coaches and experts helping them to perform.
Listen to what Grady has to say about the importance of teamwork:
[vimeo 187254033 w=640 h=360]#StirlingProud
Stirling Properties Philanthropic Spotlight
Everyone loves getting flowers. They miraculously lift our spirits and bring a smile to our face. And some people need that pick-me-up more than others.
Stirling Properties Senior Vice President, Donna Taylor, recently discovered the power of flowers through a nonprofit organization called Bouquets of Hope.
Taylor’s daughter was just married in Memphis, Tennessee. The ceremony and reception areas were beautifully decorated with exquisite floral arrangements and bouquets, along with those held by the bridal party. All of the festivities went off without a hitch, and the happy couple departed for their lifelong journey. But what do you do with all of those flowers after the wedding?
Ironically, Taylor saw a news program on a nonprofit organization that founded a program called Bouquets for Hope. The organization collects flowers from weddings and events, rearranges them, and delivers them to local nursing homes, hospitals, hospice homes, rehabilitation centers, and anywhere there is a need to brighten someone’s day. In addition, the ministry also serves as a job training and employment opportunity for clients.
From the Taylor wedding, volunteers were able to create 50 bouquets that were delivered to seniors at Christian Care Center. They were thrilled to receive the arrangements, especially the gorgeous bridesmaids’ bouquets! Taylor hopes that by sharing this message, others will do the same.
Here at Stirling Properties, community philanthropy is a big deal. We pride ourselves in giving back to the communities that support us. The company encourages our leaders and employees to give their time and resources to support nonprofit organizations and community groups, and we couldn’t be prouder.
Every act of kindness, no matter how big or small, can go a long way. So we encourage everyone to get out there and brighten someone else’s day!
#StirlingProud
Beware the Broad Brush
There has been much debate in the media this week about Donald Trump’s taxes and the need for Congress to overhaul America’s tax system. In yesterday’s editorial debate of the USA Today, the editorial board makes its point for real estate tax policy reform and the overly generous tax benefits received by commercial real estate property owners.
The opposing viewpoint, authored by Real Estate Roundtable President and CEO, Jeff DeBoer, emphasizes that all business investments, including real estate, be allowed to recover its capital investment cost through depreciation and amortization. He goes on to point out that it is irresponsible to specifically target the tax structure of the real estate industry, which accounts for a large percentage of America’s jobs and economic activity.
The current value of the US commercial real estate investment is approximately $6.0 trillion, leveraged conservatively at approximately 55% (over $2.7 trillion of equity; $3.3 trillion of debt). This investment is responsible for billions of dollars in economic activity, supports approximately 9 million American jobs, and contributes 13% of the nation’s gross domestic product. Real estate activity accounts for nearly 25% of the taxes collected at all levels of government, including income, property and sales taxes. Property taxes alone constitute 40% of the state and local tax base. Taxes derived from real estate ownership and transfer represent the largest source, which in some cases, is approximately 70% of local tax revenues, helping to pay for schools, roads, law enforcement and other essential public services.
Further, the US real estate industry is an inherently domestic product that cannot be offshored through inversions or other tax schemes. If Congress does take on Tax Reform in 2017, it should be noted that much of our country’s real estate investment is made locally by individuals seeking solid, long-term returns with a desire to improve their neighborhoods and serve the communities in which they live.
Let’s not use Mr. Trump’s personal tax situation as a means to hurt our local communities and our nation’s economy by using a broad brush approach!
Stirling Properties Brokers Acquisition for The Learning Tree, Inc. in Mobile, Alabama
Stirling Properties is pleased to announce the sale of property to The Learning Tree, Inc. in Mobile, Alabama, that will be used to house office and support staff, as well as allow for future school expansion.
The property is located at 5451 Able Court in Mobile, adjacent to The Learning Tree’s current facility, and was purchased from F&S. The acquisition includes four existing office/warehouse buildings totaling 15,190 square feet. With the new location, office and support staff will now be located next door to the school facility, rather than across town, creating a much more efficient and effective operation. They plan to occupy the space early 2017.
Nathan Handmacher, Stirling Properties Senior Sales & Leasing Executive in Mobile, handled the transaction. “My son attended Woody’s Song School, which is a program of The Learning Tree, so this transaction was rather personal and fulfilling for me,” said Handmacher. “I’m thrilled that we were able to help the school acquire this property that will streamline their operations, so they can continue to focus on the great work they do for the young people in our community.” Handmacher also volunteers for The Learning Tree and serves on the Board of Trustees for the group.
The Learning Tree is a nonprofit organization dedicated to providing educational, residential and support services for children and adolescents with developmental disabilities, including autism. Programs are designed to help children lead more fulfilling and rewarding lives.
Access to educational opportunities and support services for families and children with developmental disabilities is crucial for their success and growth. In addition, educational expansion leads to economic development and increased job opportunities within the community.
The Learning Tree serves more than 600 children and families from across the state of Alabama and the southeast region of the United States. It operates seven programs in the north, central and southern regions of the state including residential and non-residential schools for children ages 5-21, as well as preschool services.
Stirling Properties is proud to serve the commercial real estate needs for Mobile and the surrounding Gulf South region. Stirling Properties manages more than 17 million square feet of property, with close to 100 million square feet of properties and land for sale or lease in the region. We specialize in brokerage services, development & redevelopment opportunities, acquisitions & investments, and property and asset management, over a wide array of property types.
Nathan Handmacher can be reached at nhandmacher@stirlingprop.com or (251) 342-7229.
#StirlingProud
Amazon Leads the Way in E-fairness!
Alabama becomes 29th state to collect sales taxes from online giant
For decades, brick-and-mortar stores have been fighting for a level playing field with their on-line rivals who are not required to charge sales tax. To enact a little e-fairness, the state of Alabama passed the Alabama Simplified Use Tax Remittance Program, which allows online retailers that do not have operations within the state to collect, report and distribute an 8% sales tax. The on-line tax rate is still lower than its brick-and-mortar rivals who are generally closer to 10%. Since the program’s inception in October 2015, the state has received nearly $3 million in its general fund from 52 on-line retailers.
It was recently announced that Amazon, the largest e-commerce company in the world, has enrolled in Alabama’s state program and will begin distributing funds to the Alabama Department of Revenue monthly. Beginning on November 1st, Alabama will become the 29th state to collect sales taxes from Amazon.
Alabama’s Commissioner of Revenue, Julie Magee, is confident more on-line companies will sign up and expects to see a $40 to $50 million influx of tax funds by 2017 with “substantial” increases by 2018 and beyond. She further noted that 75% of the revenue goes to the state’s general fund, with the remaining balance to be split between cities and counties across the state.
As Alabama’s Government Relations Chair for the International Council of Shopping Centers (ICSC), I am thrilled to hear that Amazon will be participating in Alabama’s tax remittance program and like Ms. Magee, I too believe other on-line retailers will follow their lead. According to recent studies, it is estimated that Alabama is losing upwards of $500 million per year in uncollected sales tax from remote sales.
The shopping center industry is essential to state and local economic development – as a significant job creator, driver of GDP and critical revenue source for the communities they serve through the collection of sales taxes and the payment of property taxes.
In Alabama there are nearly 113.5 million square feet of shopping center space across 1,718 properties that directly employs over 200,000 people or 9.5% of the total state employment. These centers account for close to $32 billion in annual sales and add approximately $1.3 billion in state sales tax revenue.
An annual sales tax revenue of $1.3 billion for brick-and-mortar retail versus $40 to $50 million for on-line retail tells me we have a ways to go to level the playing field, but this is a great start. I commend Amazon for leading the effort!
#LouisianaStrong
This is a challenging time for South Louisiana. Many of our family and friends have experienced unprecedented devastation and loss resulting from disastrous flooding in the area. At least 40,000 homes have been damaged and thirteen people lost their lives.
The historic flooding resulted from record ‘1,000-year’ rainfalls produced from an unusual series of slow-moving thunderstorms that dumped tremendous amounts of water on an isolated area in excess of 30 inches in 48 hours. It was more than rivers and drainage systems could possibly hold.
Though the devastation was severe, we are thankful that the vast majority of South Louisiana is safe. In large part, those of us that have previously flooded were spared, and areas that have never seen flooding before were inundated.
While some are still struggling, conditions are improving. Louisianans are resilient—as we’ve seen time and time again—and efforts are already shifting to recovery and progress. People are returning home, businesses are reopening. Cities and communities that were not directly impacted have the opportunity to pay it forward with relief efforts to assist our neighboring residents in need.
Stirling Properties is directing our energy and resources to our employees and surrounding communities that were affected by the flooding. We’re collecting and distributing emergency assistance supplies and basic needs items for victims, and our team members are volunteering with clean-up and recovery efforts. We’re partnering with many local organizations and have made financial contributions to several nonprofits to assist with relief efforts, as well as providing emergency housing.
Our thoughts and prayers continue to be with the people, businesses and communities affected by this horrific event. Stirling Properties is committed to South Louisiana and the surrounding areas, and we will be here to help in the recovery efforts, both short- and long-term.
Thank you to everyone that has reached out to us and offered your support and assistance. We are truly grateful for your generosity.
