Colleges Chill Out on Real Estate Projects

Higher ed development projects are slowing down because of interest rates, but it's not what you think. Yes, rates are rising, says our panelist Michael Baird of RBC Capital Markets (snapped with Ballard Spahr's Teri Guarnaccia, who'll moderate the Jan. 30 event). But it's more that Maryland institutions already worked through many of the capital items on their wish lists when interest rates were at their trough, and now many are focusing on managing their debt positions. Michael is working on a refi for Allegheny College, which, he says, may be the last Maryland student housing refi he'll work on for a while.

Michael also tells us floating-rate loans will come back into fashion as interest rates rise (if this guy can float, so can interest rates). Educational institutions, in particular, may like a new RBC product that allows them to skip the bank (and thus the letter of credit). Instead, it places that loan directly with investors, making it easier for the schools to raise funds. Sign up for our event here!

1) Cresa

Twenty months after Scott Wingrat helped found Cresa's local office, the company has recognized its achievements by promoting Scott to SVP. It's a huge shot in the arm for a guy who's new to management. Scott et. al. founded the Baltimore office because it was the last top 20 market without a bricks-and-mortar presence for Cresa. But his team isn't just serving national clients' local needs; Scott tells us they're working on more than 500k SF of deals for new, locally based clients. And it's expanding and hiring. If you really want to congratulate Scott, though, make it for his upcoming Memorial Day wedding to Jennifer (snapped together above). Congrats!

2) KLNB

The parent of NAI KLNB and KLNB Retail is fresh off a $1.3B year, its largest yet at 6% over 2012's transaction volume. President Andy Georgelakos (snapped with KLNB Retail's Tom Maddux at last year's Mid-Atlantic ICSC) attributes that feat to geographic diversity. The company has offices in Towson, Columbia, DC, and two in Virginia. He calls Baltimore (where he spends his mornings) a steady ship that has improving demographics and is becoming a place where corporations can look for a “second home” outside of DC (where he spends his afternoons). Retailers, too, are spilling over from DC and backfilling B'more locations, he says.