Stirling Properties Breaks Ground on Hammond Square Self Storage
Stirling Properties commercial real estate company has broken ground on the development of Hammond Square Self Storage in Hammond, Louisiana.
The 3-story, 93,902-square-foot storage facility will be located on the corner of US Highway 51 (SW Railroad Avenue) and West Minnesota Park Boulevard behind Walgreens. It will include 641 climate-controlled units as well as RV and boat storage areas.
Construction has commenced on the project, with site work and foundation work already underway. Anticipated completion is scheduled for the end of July.
Stirling Properties is developing the facility and will handle daily management upon completion. The architect is Houston-based Edgecomb & Associates, a firm that specializes in self-storage facilities, and Kent Design Build is the general contractor for the project.
“Stirling Properties is excited about the development of Hammond Square Self Storage. This project marks our first ground-up, climate-controlled storage facility development,” said Townsend Underhill, President of Development for Stirling Properties. “Tangipahoa Parish is experiencing significant growth, creating a high demand for this type of service. The strategic location in close proximity to Hammond Square and I-12 will provide easy access and convenience for customers.”
Underhill continued, “We’ve assembled a very talented team—with tremendous experience in the storage industry—to work on the development of Hammond Square Self Storage. Stirling Properties currently manages and operates several climate-controlled storage facilities within our existing portfolio that were redevelopments of previously occupied retail space.”
Stirling Properties also redeveloped the neighboring Hammond Square shopping center located on the northwest corner of Interstate 12 and Hwy. 51. Hammond Square is Tangipahoa Parish’s premier shopping destination. Anchored by Dillard’s, Target, Sears, JCPenney, Academy Sports+Outdoors, and AMC Theatres, the 903,000-square-foot retail center offers a dynamic mix of national and local retailers, shops, and restaurants.
Hop On Over To Hammond Square!
Join us for the annual Easter EGG-stravaganza at Hammond Square on Saturday, March 24th from 11:30am-1:30pm. The festivities will take place on Hammond Square Drive next to Target. This FREE event is open to the public and fun for the whole family!
Come visit with the Easter Bunny. Guests will also enjoy pony rides, a petting zoo, face painting, and a live radio remote with great prizes from Kajun 107.1. Don’t forget your Easter baskets—the egg-citing Easter Egg Hunt will begin at 1:00pm featuring more than 4,500 candy-filled eggs. (The egg hunt is limited to children ages 0-12 years.) Professional Easter photographs are available for a fee at Hammond Square with Becky Blount Photography (appointments are recommended).
Hammond Square is a proud sponsor of The Daily Star’s Easter Coloring Contest for children ages 7-10 years. Complete your coloring sheet and bring in to The Daily Star by Wednesday, March 23rd at 3:00pm to be eligible to win an egg-cellent prize pack from Hammond Square.
Come on out to celebrate with us—and the Easter Bunny—during the annual Easter EGGS-travaganza! We hope to see you there. Be sure to check out all the great stores at Hammond Square for your Easter and spring supplies.
Visit HammondSquare.com or “like” us on facebook.com/hammondsquare for a complete list of retailers and events.
Have a Hippity Hoppity Easter from Hammond Square!
We are Evolving!
Stirling Properties celebrates 20th Annual Stirling Honors.
Stirling Properties celebrated its 20th Annual Stirling Honors last Friday at the beautiful NOPSI Hotel in New Orleans. The yearly event recognizes and distinguishes the successes of Team Stirling and the company over the past year. A Commercial Celebration was also held to honor the Commercial Brokerage Division and to grant Commercial Production Awards.
To kick off the morning, Dancing Grounds performed an outstanding tribute to New Orleans in honor of the city’s 300th Anniversary with African drums and a second line rendition. The overarching theme of the day was EVOLUTION. Much like the City of New Orleans, Stirling Properties—and the entire commercial real estate industry—has evolved over the years to keep pace with the changing landscape.
Stirling Properties’ President & CEO, Marty Mayer, served as the event emcee for the day and encouraged team members to think about how technology and industry advancements will continue to impact the company moving forward. “Our industry is changing, the way we communicate and position ourselves is changing, technology is changing… and as a result, the way we do business is evolving. It’s imperative that we are proactive and adaptable,” said Mayer.
He went on to say, “We don’t know exactly what the future holds, but we can be certain it will hold significant transformation. I challenge each of you to be creative and explore new and innovative opportunities. We will need fundamental change to get from where we are now to where we need to be—and it will take all of us working together as a team to get there.”
Zach Strief, Former New Orleans Saint
Former New Orleans Saint, Zach Strief, closed out the program with an inspirational message on the importance of supporting and giving back to our community. He shared his love for New Orleans and his passion for philanthropy through numerous local nonprofit organizations including Café Reconcile, Team Gleason, and Dream Big Foundation. At the end of his presentation, Stirling Properties presented Strief with a $5,000 donation in support of Team Gleason.
The Team Stirling awards ceremony was held in the afternoon. Jan Kinard, Roslyn Rogers, and Jeff Barnes were acknowledged as recipients of Stirling Properties’ most prestigious honor, the Exceeding Excellence Award, presented for extraordinary employee actions that exemplify the values necessary to further the success of the company. Exceeding Excellence Award recipients are nominated and selected by their co-workers. Commercial Division Award recipients received recognition for Bronze, Silver, Platinum, Diamond, and Ruby production levels based on individual adjusted gross commissions from 2017. Special acknowledgment was also given to Rhonda Sharkawy, Senior Retail Leasing and Development Executive in New Orleans, for achieving the Top Commercial Producer Award—this is the 4th consecutive year she has earned this accolade.
Thank you to everyone who joined us for a great day of inspiration, company insight, delicious food, and camaraderie!
COMMERCIAL DIVISION AWARDS
Ruby Award
Diamond Award
Platinum Award
Gold Award
Silver Award
Bronze Award
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Also recognized were employees and agents who achieved special anniversaries with the company. Service Awards were given for 5, 10, 15, 20, 25, and 35-year milestones.
SERVICE AWARDS
5 Years of Service: Mike Alexander – Lafayette, Karen Bachemin – Covington, Mac Bauer – New Orleans, Ryan Juneau – Baton Rouge, Samantha Marshall – Covington, Karen McElroy – Shreveport, Stacy Odom – Shreveport, Mel Sayler—Covington, Mike Seago – Gulfport, Denise Tatum – Baton Rouge, Kelly Vargas – Westpark, Kelly Wellmeyer – Covington, Robin Zemke – New Orleans
10 Years of Service: Seth Citron – Lafayette, Kayla Davis – Covington, Joe Gardner – New Orleans, Justin Landry – Covington, Reid Richardson – Covington, Gaines Seaman – New Orleans, Townsend Underhill – Covington
15 Years of Service: Will Barrois – Mobile, Mike McDougall – Covington, Cyndie Quave – Covington, Sonia Shoemaker – New Orleans, Ashlee White – Covington
20 Years of Service: Beth Cristina – New Orleans and Rhonda Sharkawy – New Orleans
25 Years of Service: Paul Mastio – Covington and Harold Staub – New Orleans
35 Years of Service: Grady Brame – Covington
Stirling Properties Names Darryl Bonner To Executive Team
Stirling Properties is pleased to announce that long-time real estate executive, Darryl Bonner, has joined its team as Vice President of Strategic Initiatives. He will work from the company’s Pensacola (FL) Office located in the SCI Building at 220 West Garden Street.
As VP of Strategic Initiatives, Bonner will assist Stirling Properties with short- and long-term strategic planning of the company’s expanding portfolio. He will also support new business growth across a variety of service areas including development, management, leasing, and acquisitions.
“We are thrilled to have Darryl join Team Stirling. He has been a leader in the commercial real estate industry for quite some time and brings a wealth of experience to our company,” said Marty Mayer, President & CEO of Stirling Properties. “In this rapidly evolving business environment, his extensive market knowledge and deep-set relationships throughout the Gulf South region will add significant value to our strategic growth plans.”
“I have always admired Stirling Properties and the skill set that this team brings to the Gulf South region—so it is with great pride and much excitement that I accept this unique role. I look forward to being a part of the company’s future success,” said Bonner.
Previously, Bonner was Senior Vice President of Retail for Cousins Properties in Atlanta, GA, where he was responsible for all retail leasing activity for the company—from specialty centers to mixed-use projects and office properties, including the procurement of key leases and tenants during pre-development activities in new projects. He has extensive experience working with national and regional retailers and leasing platforms.
Prior to that, Bonner held a range of retail leasing executive positions at General Growth Properties in Atlanta, GA; Jim Wilson & Associates in Montgomery, AL; and Robert B. Aikens & Associates in Troy, MI.
A Florida native, Bonner earned his bachelor’s degree from Southeastern Louisiana University in Hammond, LA, and his MBA from Auburn University in Montgomery, AL. He is a member of the International Council of Shopping Centers (ICSC) and holds the professional designations of Certified Shopping Center Manager (CSM), Certified Leasing Specialist (CLS), and Certified Retail Property Executive (CRX). He is a frequent guest speaker at Auburn University, ICSC conferences and industry roundtable discussions, and real estate educational programs.
Suburban Office Space In Short Supply for Baldwin County
I recently attended a commercial real estate conference held in Birmingham, Alabama, where over 500 commercial brokers, developers, lenders, politicians, and business leaders gathered to learn of current trends in commercial real estate, as well as to gain a better understanding of how certain factors have and will continue to shape the future of Alabama. Prevalent themes centered on the rapid growth of the Gulf South region and the evolution of our industry—with progressive growth and opportunities on the horizon for the South Alabama market, notably, changes in the office market space.
Baldwin County continues to be the fastest growing county in Alabama with 49% population growth since 2000. The University of Alabama’s Center for Business and Economic Research (CBER), projects that the Daphne-Fairhope-Foley metro population will increase 43.6% over the next 20 years, and is anticipated to become the 4th largest MSA in the state by 2040. The recent arrival of the Walmart distribution center and Amazon fulfillment center, combined with the expected growth of companies such as Airbus and Austal, the continued success of the Port of Mobile, and the addition of the new bridge over Mobile Bay all point towards a bright future for the South Alabama region.
But as the population continues to increase throughout Baldwin County and new businesses are attracted to the region, the nonexistence of Class A office space outside of Mobile’s CBD is evident. The product simply doesn’t exist. The lack of available inventory can indeed be frustrating—not only to national commercial brokers seeking office space options for clients but to local economic developers tasked with recruiting industry and commerce to the area.
According to Lee Lawson, President and CEO of Baldwin County Economic Development Alliance, “The lack of available professional office product in Baldwin County is a critical difference maker in converting economic development opportunities to successes. We continue to work with our partners both private and public to create the environment where economic development opportunity conversions can happen successfully. In the white-collar office arena, existing space in the marketplace creates a higher conversion opportunity ratio for new high-paying jobs in our community.”
Even more challenging would be to locate a Class A office building that meets the preferences of today’s changing workforce. There are certainly niche markets, such as Downtown Fairhope, that are starting to support a higher-end office product but on a smaller scale. Other options for office space along the Eastern Shore of Mobile Bay, including Spanish Fort, Daphne, Fairhope, and Point Clear are primarily made up of smaller, older buildings, some of which are becoming antiquated. Office space needs for those users not willing to commute to broader markets such as Mobile or Pensacola are often met by converting retail space to office use or working from a home office.
On pace with national trends, office building features are evolving, with an emphasis on more open space for collaboration and shared-office facilities in high-tech buildings. Suburban locations with urban-type amenities are highly favored among the substantial millennial demographic shift and will create even more demand in the next few years as the age group continues to mature. Another popular suburban office trend is the mixed-use, live-work-play development model with walkability to nearby restaurants, retailers, and residential services.
To expound upon the shifting trends of suburban office space and the lack of Class A inventory in the area, Stirling Properties has recognized a significant need to provide for quality office space. We are currently underway on pre-leasing efforts for The Offices at Spanish Fort Town Center, a proposed 2-story, 44,000-square-foot, Class A office building strategically positioned along the I-10 corridor in Spanish Fort. This future development is in the bullseye of major growth in the county and provides convenient access to both Mobile and Pensacola. Not only will this new office building help to attract corporate and professional users to the area, but the new construction and design also allow the incorporation of the emerging styles that will change the way office space is utilized.
The Offices at Spanish Fort Town Center will include state-of-the-art construction such as efficient floor configurations, allowing tenants the ability to design space to incorporate innovative ways to potentially reduce square footage required, therefore, reducing rental expenses. Other features include flex space to encourage and promote collaboration among employees; flexibility in hours of operation, as the trend for 24/7 “shift” use evolves; and ample, free surface parking, resulting in significant cost savings when compared to paid parking typically associated with CBDs. It will also benefit from high interstate visibility and signage opportunities.
The office building is within walking distance of numerous on-site amenities associated with Spanish Fort Town Center, a mixed-use development consisting of retail, restaurants, and residential facilities. An on-site Container Park is also planned for 2018, with exciting new restaurant vendors.
Our region is quickly emerging as a top destination for business and corporate growth and relocation. Baldwin County has been named #1 in the state of Alabama for incoming business investment for the 2nd year in a row, and #1 in the state for Workforce Talent Attraction. If we are going to compete with other top markets—and win—we must be able to provide quality office space in our suburban markets.
Stirling Properties is excited to embrace and support the growth of Baldwin County and our region. With offices spanning the Gulf South, our team is well-equipped to recognize and execute strategic commercial real estate opportunities—from Louisiana to the Florida Panhandle.
For additional information, please contact me at 251.375-2496 or jbarnes@stirlingprop.com.
Tax Reform & Real Estate… It’s a good time for our industry
The Tax Cuts and Jobs Act passed in December and several of these provisions will take effect in 2018. Many individuals have already benefited from the new tax law by seeing their recent paychecks increase. We believe this tax reform will have a similar positive impact on the real estate industry. Tax reform can be a very complicated—and tedious—topic so we’ve highlighted some of the implications for real estate owners, small business owners, and individuals. We’ll preface by saying this is our interpretation of the law, prior to the regulations being written and what we think Congress intended by the text of the law.
Initially, many of us in the real estate industry were very concerned about tax reform and the negative aspects that were being considered. The International Council of Shopping Centers (ICSC), responded by forming a committee consisting of executives and tax professionals across our industry to garner input to deploy lobbying efforts. Stirling Properties played a significant part in providing consistent feedback that guided ICSC’s lobbying efforts. Several executives in our company, including Marty Mayer, Townsend Underhill, Jimmy Maurin, Will Barrois, and me, were active in lobbying congress, and as noted below, these efforts were successful. Together, we were able to quickly respond to aspects of the tax proposal that were detrimental to the real estate industry and offer solutions that would benefit our real estate holdings and the business as a whole. We’ve compiled a brief overview of some of the changes.
Real Estate Business Owners and Investors
- Expanded Bonus Depreciation: Items that were previously required to be capitalized over 15 years (subject to 50% bonus depreciation) are now eligible for a 100% deduction in the year of completion.
- Examples of these items include parking lots, landscaping work, pylon lighting, etc.
- This provision begins to phase out after 5 years.
- Business Income Deduction: 20% of the taxable income generated from a business could be eligible to be deducted from taxable income pending multiple limitations.
- For example, if your share of taxable income from a business you own is $100,000, the first $20,000 may be eligible for a deduction, thus lowering taxable income to $80,000.
- Business income from pass-through entities like partnerships and LLCs will still be taxed at the new lower individual rates.
- Historic Preservation and Rehabilitation Tax Credit: The 20% credit for renovating certified historic structures remains in place but must be taken over a 5-year period as opposed to being fully deductible in the year of completion under the existing law.
- C-Corporations Tax Rate: The corporate tax rate under the new law is 21% as compared to 35% under the existing law.
- Property Tax Deduction: Still in place for real property trade or businesses including rental properties.
- Interest Expense from Loans: Businesses will still be eligible to deduct the interest expense from the debt incurred if its gross receipts are less than $25 million.
- The vast majority of commercial real estate in the Gulf South region would continue to be eligible to deduct interest.
- 1031 Exchanges: Real estate will still qualify to receive 1031 treatment.
- Capital Gains Rates: Remained unchanged at 0%, 15%, and 20% depending on income levels.
- Carried Interest: The new law requires a 3-year holding period to qualify for capital gains treatment as opposed to a 1-year holding period under the current law. This was a “win” for real estate as the original proposal was for carried interest to be taxed at ordinary rates.
Individuals
- Tax Rates: Almost every bracket has been widened and lowered with the top bracket being lowered from 39.6% to 37% thru 2025.
- Standard Deduction: Single filer’s standard deduction increased from $6,350 to $12,000. Married filer’s standard deduction increased from $12,700 to $24,000.
- Personal Exemptions: Taxpayers will no longer be eligible to deduct the $4,100 per dependent.
- Child Tax Credit: The child tax credit increased from $1,000 to $2,000.
- State and Local Taxes: Deduction under the new law is capped at $10,000.
- Estate Tax Exemption: Doubled to $11.2 million for single filers and $22.4 million for married couples.
At the end of the day, the real estate industry appears to have fared well in the Tax Cuts and Jobs Act. Some of these items are pending a technical corrections bill and additional clarification, but the expanded bonus depreciation and business income exclusion make being a real estate investor an enticing proposition. For investors looking to deploy capital in a tax advantageous investment, real estate is an appealing option that will rival alternative investments. We believe tax reform will provide a stimulus for real estate investment over the next five years.
We will follow up with more in-depth coverage of some of these items in the future, as well as how Stirling Properties is adapting to take advantage of this new opportunistic landscape.
The information contained herein is intended for information purposes only. Individuals should seek advice directly from a qualified professional before making any decisions or taking any action that might affect your personal finances or your business. Stirling Properties is not responsible for any investment or monetary decisions made based on the information provided above and is not a tax advisor. The information provided above was done so with the perceived intent of the legislation and not based on the actual regulations. The actual regulations could yield significantly different results.
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