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JANUARY 2017 SFBWMAG.COM 7.95 Brett Morris Creating a cutting-edge country club www.sfbwmag.com JANUARY 2017 3 4 JANUARY 2017 www.sfbwmag.com 2818 Center Port Circle Pompano Beach FL 33064 P 954.735.8223 18288 Collins Ave Sunny Isles Beach FL 33160 P 305.974.0161 FL State Licensed Designer 000407 PRIVATE ESTATE HIBISCUS ISLAND www.sfbwmag.com JANUARY 2017 5 RIVA Days. Live on the water. Play on the water. Residents enjoy Riva s riverside park and Water Sports Center for paddleboards kayaks water-skiing and boat rentals. Live in the city. Play in the city. Residents love neighborhood icons like Casa D Angelo Gateway Theater and Whole Foods. And along with the walkability they enjoy their private water taxi to tennis in the park and shopping at Galleria. We are pledged to the letter and spirit of the U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race color religion sex handicap familial status or national origin. Oral representation cannot be relied upon as correctly stating representations of the developer. For correct representations make reference to the documents required by section 6 JANUARY 2017 www.sfbwmag.com RIVA Nights. Live in luxury. With an indoor-outdoor carefree lifestyle. Riva s large elegant homes come with 1 or 2 exceptionally large ocean and city view terraces the perfect spot for a dinner party under the stars. Live in the heart of the best of Ft. Lauderdale. With the perfect combination of waterfront location oceansunset views resort amenities and large comfortable homes. Just in time to move-in next Summer. Two & Three Bedrooms from the 700 s to over 3 million. Sales center open at 1200 E. Las Olas Blvd. 954.233.3288. riva-condo.com. PREMIER DEVELOPERS 718.503 Florida Statues to be furnished by a developer to a buyer. Obtain the property report required by federal law and read it before signing anything. No federal agency has judged the merits or value if any of this property. All features dimensions drawings graphic material pictures conceptual renderings plans and specifications are not necessarily an accurate depiction and are subject to change without notice and Developer expressly reserves the right to make modifications. TABLE OF CONTENTS 14 ONE LINERS Catch up on the news you missed from around the region 46 PROFILE Julie Silver Talenfeld builds a powerhouse PR firm 70 TECH HUB PROFITS South Florida tech pioneers discuss the next big thig 24 INSIDE THE GATES 28 PROFILE A new bimonthly SFBW series about the business of golf and country clubs 48 CEO CONNECT Robert Sanchez drives innovation and growth at Ryder System 76 PEOPLE PASSION AND Resolve to hold the good in 2017 Protect thy elders Former American Bar Association leader keeps busy with major cases 54 EXECUTIVE ROUNDTABLE 78 FAMILY OFFICE Small steps and long-term focus both have a place to spark innovation 32 FEATURE 36 SPORTS Marijuana entrepreneurs need to be aware of industry challenges 56 WEALTH 82 How the right life insurance protects your heirs from estate taxes Miami s original country club scene HISTORY VIEWPOINT Ballpark of the Palm Beaches will be a home for spring training and more 58 REAL ESTATE 66 REAL ESATE 68 NONPROFIT Developer overcomes challenges to find success in Bimini 38 REAL ESTATE 42 HOSPITALITY A look at the markets in South Florida the Caribbean and Latin America Trump s trade stance sparks worry in commercial real estate 20 Brett Morris is an agent of change at Polo Club of Boca Raton COVER STORY How Shannon Allen developed the Grown fast-organic concept How to target and join a nonprofit board GOVERNANCE from our Sales Team at Brown & Brown Happy New Year For more than 75 years Brown & Brown has met the needs of the mass a uent community and business owners alike. Our team is highly experienced and dedicated to providing a superior level of service to each and every client. Our goal is to earn your trust and we are con dent you will nd Brown & Brown is the right choice for ALL your insurance needs. Fort Lauderdale Division - 1201 West Cypress Creek Road Suite 130 Ft. Lauderdale FL 33309 Ph. 1-800-330-3241 Fx. (954) 771-9192 privateclientgroup bb laud.com www.bb laud.com Auto Aircra Bonds Condominium Collectables Flood Health Bene ts Homeowners Liability Marina Personal Property Umbrella Workers Comp LETTER FROM THE EDITOR Development Boom Still Going Strong The reports of South Florida s boom busting appear to be greatly exaggerated. I reached that conclusion after attending an Urban Land Institute event and reviewing the One Liners in this issue of SFBW. People in Miami are reading plenty about softening in the condominium market but they might not know there is a project in Palm Beach Gardens near Scripps Florida that would have 2 000 homes 700 multifamily units and up to 4 million square feet of office space. In Delray Beach Kaufman Lynn is planning a new headquarters on Congress Avenue which the city is actively working to revitalize. At NAI Global s Florida Forum Jordan Paul CEO of Editor-in-Chief Kevin Gale NAI Merin Hunter Codman said Palm Beach County is in the middle of its glory days. In Broward County Art Falcone is getting ready to break ground on transforming the former Fashion Mall in Plantation. Flagler Village in downtown Fort Lauderdale continues to explode Two Hilton brands will be in a new hotel on First Avenue and Lennar just got a 61.7 million construction loan for 384 apartments on Fourth Street. New hot spots continue to emerge in Miami-Dade County. Developer Tony Cho and investor Bob Zangrillo are planning Magic City a 15-acre development in Little Haiti with a potential value of 1 billion. The Rubell Museum a pioneer in Wynwood is moving to Allapattah north of Jackson Memorial Hospital. I expect artists will follow as Wynwood rents steepen. Russian developer Vladislav Doronin likes Miami so much that he just bought a site next to his Missoni Baia condo project for 54 million. Even the Miami City Commission is cashing in by exploring the sale of its Miami Riverside Center to Adler Group which wants to build Nexus Riverside with than a million square feet of shops apartments and hotel rooms. There are some notes of caution though. Inigo Ardid co-president of Key International said at an Urban Land Institute forum that it will be very difficult to get projects started in the next year or two. Related Group chairman Jorge Perez said buyers hear reports of a slowdown and now want to haggle more over prices. Terra Group president David Martin says resellers need to have a more realistic tone on price rather than expecting something that doesn t make sense. At the NAI forum Jeremy Larkin co-chairman of NAI Miami sees signs of a bust in condo activity but says it won t show up until data is reported in April. Economic slowdowns and currency issues are prompting some buyers to exit contracts for pennies on the dollar. The good news There may be some better bargains ahead in some overheated markets. Kevin Gale 10 JANUARY 2017 www.sfbwmag.com Gary Press gpress sfbwmag.com EDITOR-IN-CHIEF AND SENIOR VICE PRESIDENT OF STRATEGY Kevin Gale kgale sfbwmag.com COPY EDITORS Jason Davis Keren Moros Alyssa Fisher CHAIRMAN AND PUBLISHER Creative CREATIVE DIRECTOR ART DIRECTORS Melanie Smit Alexander Hernandez Frank Papandrea Evelyn Robles Writers CONTRIBUTING WRITERS Gerald Czarnecki Chris Fleck Stephen Garber Leslie J. Kraft Martin Lenkowsky Darcie Lunsford David Lyons Julie Neitzel Arnold Rosenberg Greta Schulz Photographers Downtown Photo Fort Lauderdale Thomas Rollo Larry Wood Managing Director CLAYTON IDLE cidle sfbwmag.com rlopez sfbwmag.com gscott sfbwmag.com Market Directors LORI CASTLE JORDAN KNOWLES-BARTLEY lcastle sfbwmag.com jknowles sfbwmag.com OPERATIONS DIRECTOR RICH LOPEZ GAIL SCOTT DIRECTOR OF MARKETING & EVENTS MARKETING MANAGER Monica St. Omer monica lmgfl.com Jennifer Barb jbarb lmgfl.com Estefania Marin emarin lmgfl.com Editorial Advisory Board Marc Brotman Brotman Nusbaum Ibrahim Founder and Partner Bob Birdsong OK Generators President Rick Case Rick Case Automotive Group Owner Monroe Gang Atlantic Partners CEO Gerald Greenspoon Greenspoon Marder Co-managing Director Howard Kaye Howard Kaye Insurance Michael Kaufman Kaufman Lynn Construction Founder President and CEO Michael Keeby Brown & Brown of Florida Executive Vice President Jeremy Larkin NAI Miami President Alan Levan BBX Capital Founder Gerry Litrento BankUnited Senior Executive Vice President Steven Mariano SunCoast Holdings Chairman and CEO Neil Merin Merin Hunter Codman Chairman Ed Pozzuoli Tripp Scott President Chris Roberts Lexus of Kendall President Ron Shuffield EWM President Rachel Sapoznik Sapoznik Insurance CEO Terry Stiles Stiles Corp. Chairman and CEO Lisa Anderson TD Bank Vice President of Commercial Lending for Broward and Palm Beach Counties Mark Trowbridge Coral Gables Chamber of Commerce President and CEO Yamal Yidios Ytech International Jordan Zimmerman Zimmerman Partners Advertising Chairman and CEO SFBW Magazine 3511 W. COMMERCIAL BLVD. SUITE 200 FORT LAUDERDALE FLORIDA 33309 954.377.9470 FAX 954.617.9418 WWW.SFBWMAG.COM Manage Your SFBW Subscription Is SFBW arriving in your office with an outdated subscription label Contact Debra Curtis at dcurtis tribalbusinessjournal.com or (954) 377-9595 to give us updated information such as a new executive or someone no longer with your organization. Visit sfbwmag.com to see our digital content and sign up for our weekly newsletter 2016 SFBW magazine is published by Lifestyle Media Group all rights reserved. SFBW is a monthly advertising magazine. All contents are protected by copyright and may not be reproduced without written consent from the publisher. The advertiser is solely responsible for ad content and holds publisher harmless from any error. Home is where your bed is Nothing beats the feeling of coming home to a bed you love. That s why we build every H stens bed completely by hand using sustainably-sourced natural materials giving you the secret to being truly well rested. Visit your nearest retailer and experience the difference. hastens.com BRICKELL MATTRESS 1030 SW 8 Street Miami FL 33130 Tel. 305-326-4000 Email Sales BrickellMattress.com Designers Welcome ONE LINERS PALM BEACH The South Florida Accelerator and Citrix Systems held a VIP kickoff for their alliance at Excell Auto Group s Boca Raton showroom. Boca Raton is looking at bids by Lennar Corp. Compson Boca Argent and GL Homes to develop the 194-acre Boca Raton Municipal Golf Course. Florida Community Bank has granted a 65 million 15-year mortgage for the Rybovich marina and yacht repair facility at 4200 Flagler Drive West Palm Beach. Robert Granda a broker for Franklin Street told The Real Deal that the Tiffany & Co. building on Worth Avenue in Palm Beach is on the market and will likely fetch more than 40 million. Crossmatch a provider of security and identity management solutions based in Palm Beach Gardens is rolling out a new secure enterprise authentication system called Composite Authentication. Onessimo Fine Art in PGA Commons in Palm Beach Gardens has undergone a major renovation and doubled its size to 3 000 square feet. (Jason Nuttle Photography) Companies can improve financial performance and the likelihood of mergers being approved by having former politicians and regulators on boards of directors and management teams according to a study coauthored by Florida Atlantic University s David Javakhadze an assistant professor of finance. The Sun Capital Partners Foundation in Boca Raton has selected Fort Lauderdale-based charity HANDY (Helping Abused Neglected Disadvantaged Youth) to receive a 100 000 grant. Belvedere Business Park 8020 Belvedere Road West Palm Beach was sold for 12 million by McCraney Property to Concord Hospitality Enterprises will put the Marriott Autograph Collection brand on a new 200-room hotel on the former site of the West Palm Beach City Hall. a company managed by Peter Alevizos and Nancy Alevizos of Jupiter. Swedish investor Bjarne Borg paid 1.8 million for the two-acre waterfront Bell s Mobile Home Park on State Road Alt. A1A in Jupiter. Florida Atlantic University has entered into a licensing agreement for its patented research with Neuro Pharmalogics a private biopharmaceutical company focused on developing and commercializing innovative therapies for patients with rare neurological diseases Lesser Lesser Landy & Smith Managing Partner Gary Lesser has joined the Palm Beach County Chamber of Commerce board. Affiliates of West Palm Beach-based Priderock Capital Partners paid 36.5 million for the Lakeview Cove apartments in North Lauderdale. Avison Young brokered the 3.2 million sale of three acres at 3185 S. Congress Ave. Delray Beach where Kaufman Lynn Construction plans its headquarters in a new mixed-use complex. In a sign of the Palm Beach County market s strength NAI Merin Hunter Codman said it represented buyers and sellers in approximately 250 million of commercial real estate sales from June to November 17 Brock Development Corp. announced plans for Alton Town Center a 350 000-squarefoot mixed-use center that will coincide with the Alton development of regional impact (2 000 residences 700 multifamily units and up to 4 million square feet of biotech and research medical space) across from Florida Atlantic University on Donald Ross Road in Palm Beach Gardens. www.sfbwmag.com JANUARY 2017 15 ONE LINERS BROWARD Roscioli Donzi Yachts R-58 Sport Cruiser which has open bridge and all weather bridge options made its debut at the 2016 Fort Lauderdale International Boat Show BBX Capital has named restaurant veteran Brick Kerge as vice president of operations for its MOD Pizza franchise in Florida. Broward County s first Lululemon Athletica has opened at The Galleria in Fort Lauderdale. Port Everglades International Logistics Center is proposing a 250 000-square-foot with an attached office building at Port Everglades. South Florida s first Cooper s Hawk Winery & Restaurant has opened at The Promenade at Coconut Creek 4473 Lyons Road. Pompano Beach s redeveloping Old Town area northeast of Atlantic Boulevard and Dixie Highway has unveiled the first U.S. Fountain Flame a German technology that involves injecting propane into water. Developer Dev Motwani and Driftwood Acquisitions & Development plan to have Hilton s Tru and Home2 Suites brands on a new hotel building at 315 NW First Ave. in Fort Lauderdale s Flagler Village neighborhood. Old School Hospitality plans an early-2017 opening for Good Spirits a restaurant with American cuisine and sushi at Fifth Street and Federal Highway in Fort Lauderdale. Greenspoon Marder has launched an International Wealth and Asset Planning practice group chaired by Shareholder Barry S. Engel. Las Olas Co. Barron Real Estate and Hudson Capital Group which own 90 percent of the retail property on Fort Lauderdale s Las Olas Boulevard have hired Comras Co. to enhance the street s tenant mix. Wells Fargo has granted a 61.76 million construction loan project for a Lennar Corp. 386-apartment project in the 100 block of Northeast Fourth Street in Fort Lauderdale s Flagler Village area. The Greater Fort Lauderdale Convention and Visitors Bureau has debuted Hello Sunny TV a 24-hour digital channel. Rockefeller Group and Stiles report that Amaray Las Olas a 254-unit project at 215 S.E. Eighth Ave. Fort Lauderdale was 86 percent leased just six months since first occupancy. With city of Plantation approvals in hand Art Falcone s Encore Housing Opportunity Fund plans to break ground during the second quarter on redeveloping the former Fashion Mall. BBX Sweet Holdings has named Kevin Coen CEO of Las Olas Confections and Snacks which will manufacture market and distribute the company s wholesale portfolio of chocolate and confectionary brands. The Broward County Commission voted to negotiate a land lease for the 109-unit The Gallery at FAT Village 600 N. Andrews Ave. Fort Lauderdale a joint venture by Related Group and Doug McGraw founder of the Flagler Arts and Technology Village. Silver Airways has started regularly scheduled commercial air service between Fort Lauderdale and Santiago Cuba. Miller Construction completed the interior for One Door East a tapas restaurant at 620 S. Federal Highway Fort Lauderdale. www.sfbwmag.com JANUARY 2017 17 ONE LINERS MIAMI-DADE Blvd. say they have closed on a 225 million construction loan from an undisclosed lender. The Rubell Family Collection is moving to a new 100 000-square-foot museum at 1100 NW 23rd St. in Miami s Allapattah neighborhood. Developer Moishe Mana is donating 2.5 million and 15 000 square feet of space for Florida International University s communications arts and architectural programs at Mana Wynwood a 30-acre mixed-use development. Spanish billionaire Amancio Ortego is buying Miami s 55-story Southeast Financial Center 200 S. Biscayne Blvd. for 500 million. Carnival Corp. s Princess Cruise Line is paying a 40 million fine for illegally dumping oily water. Miami Dolphins Hall of Fame quarterback Dan Marino hosted a wine and cigar dinner sponsored by Greenspoon Marder and Badia Spices that raised more than 500 000 for The Dan Marino Foundation and Marino Campus. Missoni Baia condominium developer Vladislav Doronin has bought a site next door in Miami s Edgewater neighborhood for 54 million. PortMiami s Terminal F which is being used by MSC Cruises is undergoing a 37.5 million expansion and renovation. Brazilian luxury retailer Bossa Concept Store has opened at 1201 20th St. Miami Beach Developer Tony Cho and investor Bob Zangrillo are planning Magic City a 15-acre development near Northeast Second Avenue and 62nd Street in Miami s Little Haiti neighborhood with a potential value of 1 billlion. The Central Fare dining and retail experience at Brightline s MiamiCentral station announced two more tenants--Parliament Espresso Bar and Della Bowls by Wynwood Yard s Della Heiman. The developers of Miami s 62-story One Thousand Museum Tower 1000 Biscayne Enovation Brands of Aventura has introduced Gemma di Luna moscato an Italian sparkling wine. Pensam Residential a national multi-housing owner and operator bought The Breakers Resort 1 523-unit apartment community in Denver for 350 million. Sergio Boppel a fourth-generation coffee grower has opened coffee roaster Great Circle Coffee in Miami s Little Haiti neighborhood. The Securities and Exchange Commission filed charges alleging that Miami Beach-based asset management company Onix Capital LLC and owner Alberto ChangRajii defrauded investors by issuing promissory notes that guaranteed annual returns of 12-19 percent. County commissioners Francis Suarez and Esteban Bovo Jr. spoke in favor of using tax increment financing or an assessment to help fund Tri-Rail s Coastal Link on the Florida East Coast Railway. Miami Jewish Health announced a 5 million gift from real estate broker investor and philanthropist Edie Laquer to help build the EmpathiCare Village. Saint Laurent which offers modern fashion interpretations of the French Modernist movement of the early 20th century has opened at 149 NE 40th St. in Miami s Design District. The Miami office of global architecture and design firm Perkins & Will is celebrating its 20year anniversary. Texas-based Mill Creek Residential is planning Modera Edgewater 25 a 297-unit apartment project at 455 N.E. 24th St. in Miami. BC Partners and Medina Capital formed a joint venture that combines a portfolio of data centers to be acquired from CenturyLink and Medina Capital s security and data analytics portfolio. Developers of the Doral DoubleTree by Hilton have received 16 million in construction financing including 10 million through the EB-5 immigrant investor program. A joint venture of Related Group Metro 1 and Dragon Global paid 12 million for a 1.22-acre mixed-use site near Northwest First Avenue and 28th Street in Wynwood. The Rusty Bucket Restaurant and Tavern will open its 25th location at CityPlace Doral in February. Banco do Brasil s BB Americas which developed a credit card collection with images by artist Romero Britto reports it has reached 500 million in assets. Flagstone Property Group which wants to add hotel restaurant and retail space to its Island Gardens megayacht marina on Miami s Watson Island has won a case in the 3rd District Court of Appeal which clears the way for further development. The Landmark at Merrick Park theater has opened in Coral Gables. VirtuRide which uses hydraulic platforms and a big screen to simulate an on-road cycling experience has opened at 2293 NE 164th St. in North Miami Beach. www.sfbwmag.com JANUARY 2017 19 COVER STORY COVER STORY Not Your Grandfather s Club BRETT MORRIS BRINGS A MODERN TOUCH TO THE POLO CLUB OF BOCA RATON BY MARTIN LENKOWSKY PHOTOGRAPHY BY LARRY WOOD 20 hen Brett Morris was hired as general manager and chief operating officer at the Polo Club of Boca Raton as 2012 he recognized major changes in philosophy and leadership were needed--immediately. He noticed a plethora of problems needing to be fixed. There were governance issues employee morale issues financial and sales issues and member morale issues he says. The country club industry in South Florida is highly competitive says Morris with every club trying to become more desirable and attract more members. He says there are 45 clubs in Palm Beach County alone employing 10 000 people representing 70 000 residents and 36 000 households. Last year country clubs in South Florida spent 150 million in construction projects Morris says. We re all trying to make ourselves the club of choice he says. It s all amenity-driven. You want to make sure the member experience is the best for the customers. From the time Morris came to the Polo Club it has invested more than 25 million in renovations including its 145 000-square-foot clubhouse with five different dining venues two 18-hole championship golf courses clay tennis courts a family-resort pool complex and children s activity center as well as a 35 000-square-foot spa and fitness center. And the feedback has been positive says the 49-year-old Morris a New Jersey native and a 1988 graduate of the Culinary Institute of America in New Hyde Park New York. I m extremely happy he says. In 2012 I think it had an identity crisis. Home sales were not what we wanted them to be. We need home sales to continue with the capital improvements. Morris says members were looking for a plan that would make the club an extension of their homes. They obviously shared his plans and Polo Club of Boca Raton GM Brett Morris www.sfbwmag.com JANUARY 2017 21 COVER STORY holiday and spring camps a tennis club and even a fishing club. Before his arrival at the Polo Club he says the governing board used to micromanage. Then things changed. They let me run the operation he says. We re a club but we re also a 50 million business. If the club fails home values go down. Morris a Palm Beach Gardens resident emphasizes his top priority is giving people the best experience possible. Tompkins wants residents to see the club and its amenities as an extension of their homes. Of course once in a while things might happen that are not up to par. If you have a bad experience we want to know about it Morris says. I want to know what people are saying. Some feedback is good some not so good. You have to address it head on. You need to overcome the challenges. It s all about soliciting feedback. Cruise ship on land The Polo Club of Boca Raton s resort style swimming lagoon vision. He proudly says the renovation projects not only were completed a year early but under budget as well. He s pleased with the Polo Club s new direction under his leadership. It s about being able to redirect an organization and put it back on the map as one of the premier clubs in South Florida he says and also to create a culture where the member and guest experience comes first. We re also building a first-class management team. A CRUISE SHIP THAT NEVER LEAVES PORT Chris Tompkins director of the Polo Club s new-member sales and marketing was hired by Morris five years ago. He notices the difference. It s no longer a country club he says. It s now a true destination lifestyle resort. He [Morris] focused on a member-centric environment. It s a world-class resort. It would rival any resort hotel. Morris says the club is like a cruise ship that never leaves port. Adds Tompkins I sell it as a landlocked cruise ship. I sell the dream and he delivers. Tompkins says there are 1 709 homes in the club and about 3 500 members. Brett s job is to keep them happy engaged and smiling he says. We have 24 communities ranging from condos to estates. If you like the lifestyle we ll find you the home. Morris says there s a changing demographic in today s country club market and he s appealing to this change. We re trying to get the club younger he says. The average home buyer is 63. Our sweet spot is for ages 55 to 60. This trend toward younger buyers is not unique to South Florida. Morris says the same changing demographics holds true in Chicago New York Boston and Canada. As a result country clubs are broadening their appeal to young families with children by adding amenities for kids as well as their parents. Our goal is to keep the club sustainable he says. Golf is declining. That used to be the No. 1 activity. We re creating a lifestyle for people. You have to be creative. You have to make things fresh. When I came all the restaurants had the same [employee] uniform. We rebranded the restaurants and gave each its own identity. We have five restaurants from casual poolside to high-end seafood. For kids we have a whole plethora of activities--a teen center summer camps STARTING OUT AS A DISHWASHER Morris started his career in the service industry working as a dishwasher while in his teens. I loved the action in the kitchen he says. I loved working at night in the kitchen. After graduating from culinary school he got a job as a sous chef at a French restaurant in New York. He went on to become an executive sous chef in a restaurant at New York s Rockefeller Center-- where the ice skating is he says. He later became an executive chef at a country club in Greenwich Connecticut. He decided he wanted to move to Florida while doing an externship at Disney World while in culinary school. I always had a dream to live and work in Florida he says. Before arriving at the Polo Club he was general manager and chief operating officer at a country club on Long Island s North Shore. And where does he see his career 10 years in the future I want to keep on building on my successes here at the club he says. I just want to keep making this community the best I can. Plus he wants to give back to the business he loves. I like mentoring future leaders in the business he says. I m doing all I can to help grow the industry. 22 Clubs of Distinction TALIS PARK GOLF CLUB - NAPLES FLORIDA PEACOCK LEWIS AIA MASTER PLANNING ARCHITECTURE INTERIOR DESIGN WW W . PE AC OC KAND LE W IS. C OM N PALM BEACH 561.626.9704 NAPLES 239.631.2332 www.sfbwmag.com JANUARY 2017 23 INSIDE THE GATES BallenIsles Country Club in Palm Beach Gardens is considering a 30 million renovation of its clubhouse The Other Type of Green COUNTRY CLUBS EMBARK ON AN ARRAY OF PROJECTS This is the first in a series of bimonthly articles about the business of golf and country clubs in South Florida. BY MARTIN LENKOWSKY Country clubs in South Florida are embarking on an array of construction projects and upgrades in an effort to appeal to more than golfers. When construction on Boca West Country Club s new 155 000-square-foot clubhouse is completed early next year Jay DiPietro the club s general manager president and chief operating officer says patrons and guests can expect to see something unique and totally different from the norm. Work on the 50 million project began more than a year ago he says. The new clubhouse will offer dining facilities men s and women s locker rooms boutique shops a golf pro shop a retail center card rooms a covered golf staging area as well as offices for club services. DiPietro says the clubhouse will also include a spacious meeting room large enough to accommodate four or five group meetings at the same time. The restaurant will be like nothing else DiPietro says. The grill room is being replaced by a combo grill room and sports bar. There s also outside dining. The new grill room sports bar area will feature a nostalgiathemed streetscape from the lower East Side of New York in the 1940s. There ll be old street signs and stores with awnings he says. The new clubhouse will also feature as a steakhouse as its main restaurant. This is more than a steakhouse DiPietro says. It will have the best steaks in the United States. It will have more rooms and be glamorous. It ll be overlooking waterfalls. DiPietro says country clubs today are adding more 24 JANUARY 2017 www.sfbwmag.com The golf pro shop planned at Boca West Country Club amenities. Our whole goal is to have our members like it so much they stay here every day he says. Mike O Brien general manager at the Fort Lauderdale Country Club says People are more interested in food and the restaurants and members want a high-quality dining experience in their clubhouse. The club which has two 18-hole courses renovated its clubhouse in 2007 and celebrated its 90th anniversary in 2016. Riviera Country Club in Coral Gables recently renovated its world-renowned golf course and General Manager Mark Snure expects a new larger clubhouse to be completed in the spring. The new clubhouse will almost be a replica of the old one Snure says. We needed more space. It will be just north of where it is now. It will feature more sports and socially centered amenities Snure says. It ll be family oriented he says adding there ll be junior golf and junior tennis. We redesigned the golf course to fit the new clubhouse Snure says. We needed more party space. We needed to expand. The old one was built in the 40s. It s designed to flow and be more usable. It s a more modern structure. We also needed more parking space. The golf course renovation includes the addition of a twoacre lake and a half-acre lake and has been described as having a modern and unique design. Other course updates include significant changes in elevation and a modern irrigation system. Riviera Country Club opened in 1945 and has been described as a significant historic piece of history in the affluent Miami-Dade community. The cost of the renovations has been reported at 8 million. Brian Merbler director of sales and marketing at BallenIsles Country Club in Palm Beach Gardens sees changing trends in country club living and like a host of other clubs BallenIsles has made--and is planning more--renovations to accommodate them. Between 2008 and 2009 the club did a light renovation of its clubhouse but built a brand new sports complex. A lot of people have an affinity toward health and living longer A steakhouse will be the main restaurant at the new 155 000-square-foot clubhouse at Boca West Merbler said. He says there might be more to come in the near future. We re now fast approaching a vote for a heavy renovation to the clubhouse itself Merbler says. The cost will be north of 30 million. Many clubs are looking at changing dynamics in what attracts customers to the country club lifestyle. It s very much an eye to the future of what our membership will look like he says. A lot of clubs are putting up new clubhouses or doing renovations. There s definitely a trend or an evolution of what membership expects. The new sports complex offers Pilates and physical therapy he says. It s a one-stop shop. We have a whole team of trainers. As for the club s future plans he says what we re doing now is adding the cherry to the sundae. Some in the country club industry say they re trying to attract a younger generation of members. As a result completed or future renovation projects are being built with more familyoriented amenities being made available. South Florida Business & Wealth magazine tried contacting a number of additional country clubs throughout South Florida to discuss these changing trends. Some of them which included one club with only male members declined to comment. 26 JANUARY 2017 www.sfbwmag.com GAIN WEIGHT THIS YEAR SHED YOUR HOLIDAY DEBTS AND ADD HEFT TO YOUR CREDIT SCORE IN 2017. Debt.com has discreetly helped your neighbors reduce their total credit card payments by up to 30 to 50 percent and even gotten student loans forgiven. NEW YEAR S RESOLUTION Join thousands of South Floridians who have resolved to be happy and debt-free. Debt.com offers the easiest New Year s debt resolution ever... one simple phone call to 800-810-0989. www.sfbwmag.com JANUARY 2017 27 PROFILE PROFILE Rule of Law Former American Bar Association leader Former American Bar Association leader keeps busy with major cases keeps busy with major cases BY DAVID LYONS BY DAVID LYONS When Stephen N. Zack served as president of the American Bar Association he championed an overarching issue the protection of the rule of law in the United States. During his term between 2010 and 2011 he visited 22 countries spreading his message abroad. Among some highlights A session with law students in China who asked lots of questions about Bush vs. Gore the Florida vote recount case that decided the presidential election of 2000. I told them In our country when we have serious problems we turn to lawyers not generals. A dinner with a former Viet Cong member who became president of the Vietnamese bar association. Later Zack arranged for the ABA to electronically transfer books to a law school in Ho Chi Minh City that didn t have any. A visit to the Supreme Court in Seoul South Korea. They have chairs on each end of the bench that are empty they re saved for the North Koreans when they reunite. It s an amazing statement. Zack the administrative partner for the office of Boies Schiller & Flexner was the first Hispanic-American to lead the ABA. With four decades in law he knows more than most people about the rule of law or the lack of it. Some of the knowledge came from difficult personal experiences. At age 13 Zack and his family were forced to leave Cuba in the wake of Fidel Castro s takeover. Their business was seized family members were detained by the intelligence service. We had no rights Zack says. He didn t return to Cuba until 2008. Since then he has visited multiple times to witness the thaw in U.S.-Cuban relations and advise clients who are considering doing business there. He was in Cuba when President Barack Obama made his historic visit last spring. And when the American flag rose at the U.S. Embassy in Havana for the first 28 JANUARY 2017 www.sfbwmag.com PROFILE PROFILE www.sfbwmag.com JANUARY 2017 29 PROFILE time in nearly 60 years Zack was present to watch the ceremony. For Zack returning to his homeland generates mixed feelings. Some friends resist the notion of going back or dealing with Cuba until Fidel and Raul Castro fade from the scene or at least until their regime offers human rights concessions. He understands the conflict. I think it s very generational as far as the conflict he says. A lot of my younger friends see the [U.S.] embargo hasn t worked after 50 years. They see the revolution in the Czech Republic worked. They see the falling of the wall in Germany worked. They re proud of their Cuban-American heritage. They want to be able to enjoy their heritage as well. He regularly advises caution to clients who want access to the Cuban market. I would tell them [about] the risk of being a minority shareholder he says. How would you like to be a minority shareholder when the majority is the government That s the way it is in Cuba. In his Miami office two books are always within easy reach. One is A Nation of Immigrants written in 1958 by thenSen. John F. Kennedy. It s a narrative about how immigration influenced American history. The other contains a copy of the pre-Castro Cuban Constitution in English and Spanish. I keep it there to remind me that it is same as the United States Constitution Zack notes. In 2013 Zack served as a U.S. public delegate in the U.N. General Assembly. At one point he addressed the assembly on the rule of law. There was nothing I was more proud to do in my life than sit behind a sign that says United States of America. As improbable as it might sound Zack is enjoying the busiest year of his career. In April Zack was among 15 former ABA presidents to sign a letter urging the Senate Judiciary Committee to hold hearings and vote on Judge Merrick Garland Obama s nominee to replace the late Antonin Scalia on the U.S. Supreme Court. Committee Republicans have said they won t consider Garland arguing that a new president should pick a replacement. We think that it is a disservice to the country not to have a full Supreme Court Zack says. Zack is also involved in three of the country s largest federal litigations the Takata auto air bag case the Volkswagen emissions case and General Motors faulty ignition switch case. Last spring he represented Miami-based Carnival Corp. after it was sued by Cuban-Americans who objected to the cruise company s decision to exclude them from a newly launched cruise service to Cuba. The company imposed the ban after the Cuban government refused to accept Cubans arriving from Miami. The company changed course and the trips resumed after Havana reversed its policy. The episode is probably indicative of what business relations will continue to be like with Cuba he says. Until we see what our dancing partner will do how they re willing to move forward I think people are still going to be cautious Zack says. In today s global business environment service is essential convenience is mandatory security is vital and time is more valuable than ever. That s why general aviation professionals and business travelers depend on Fort Lauderdale Executive Airport (FXE). Conveniently located in Uptown Fort Lauderdale FXE is positioned to enhance your business travel experience. Notable amenities include a 24-hour air traffic control tower U.S. Customs facility with clearing hours until midnight 24-hour security and your choice of four exceptional fixed-based operators. FOR EFFORTLESS TRAVEL TO FORT LAUDERDALE VISIT WWW.FLYFXE.COM. 30 JANUARY 2017 www.sfbwmag.com WHY ARE WE THE 1 INVESTMENT FIRM IN MIAMI FEATURE MARIJUANA ENTREPRENEURS NEED TO BE AWARE OF INDUSTRY CHALLENGES BY KEVIN GALE Cannaquest federal law vs. state laws. Marijuana is still classified by the Drug Enforcement Agency as a Schedule I illegal drug--right up there with heroin. Trump s nominee for U.S. attorney general Sen. Jeff Sessions R-Ala. has made a number of anti-marijuana comments over the years. However there s optimism in the cannabis industry that the election created an irreversible trend. Eight marijuana proposals made ballots nationally and the only state voting no was Arizona. The nation s most populous state California approved recreational marijuana use while Florida the nation s third-most populous approved much broader use of medical marijuana. We are optimistic that there will not be any setback in what exists today with 30 states having some forms of legalized marijuana medical or recreational. It s highly unlikely that the federal government would want to take on the battle of what s been legalized by 150 million citizens of the United States says Gerald Greenspoon managing shareholder of Greenspoon Marder. His Fort Lauderdale-based law firm is notable Florida s overwhelming approval of Amendment 2--and other votes nationally--during the November 2016 elections might signal more of what s ahead in the field of cannabis than Donald Trump proposing an anti-cannabis senator to be attorney general. The passage of Amendment 2 should have a rippling economic impact says Daniel Sparks director of government affairs for BioTrackTHC a Fort Lauderdale company that provides software for the cannabis industry. Real estate construction legal medical and insurance professionals can all expect an increase in demand for their services with the implementation of an expanded medical marijuana program he says. Commercial real estate prices could rise like they did in Denver. Electricians carpenters and A C technicians would find work. Lawyers accountants and consultants joined other businesses at the Legal Learning Series Cannabis Law and Business Conference which was held four days before the election. While zoning issues and upcoming state regulations were hot topics the biggest uncertainty remains for being the first top 200 U.S. law firm to establish a cannabis practice and was the presenting sponsor of the conference. (SFBW was a media sponsor.) Florida s Department of Health still has to create regulations that cover identification cards the qualifications of caregivers and registration of treatment centers. The first cards must be issued by Sept. 3. While the amendment listed particular conditions (such as cancer glaucoma and HIV) that would allow a doctor to give a recommendation for cannabis consumption physicians have latitude for comparable debilitating medical conditions. The website for docmj.com says those conditions could include anxiety arthritis back pain diabetes migraines muscle spasms and chronic pain. Nicole van Rensburg a South Floridian whose family opened Midwest Compassion Center a marijuana dispensary in suburban Chicago is looking at Florida as an expansion opportunity. Like Greenspoon she expects the federal government will take a hands-off approach. 32 JANUARY 2017 www.sfbwmag.com FEATURE INS AND OUTS OF BUSINESS One difficulty for entrepreneurs in Florida will be figuring out a realistic business plan. A lot of the licensees in Illinois find it takes much longer than expected to be profitable says van Rensburg. She has found that patients typically spend 350 to 400 a month visit about two times a month and spend 20 minutes even if they know what they want. They want to talk about the experience of the products they tried. They are not interested in the bum s rush of just getting in and out she says. About 60 percent of her business is in what s called flowers or buds compared with concentrates. She initially expected to carry 20 to 30 distinct items for sale but ended up with 100. Patients are fiercely loyal to a particular product she says. They often don t even want to buy the same strain of cannabis produced by a different grower. Kaya Holdings CEO Craig Frank said at the conference that there are three major opportunities in the cannabis industry retail growing plants and using the plants to create products such as oils extracts and edibles. Kaya which has stores in Oregon has become vertically integrated after running into supply issues. About half of its products are flowers. Oils with cannabis extract are becoming more popular but some consumers find high concentrations of THC are too overpowering he says. BANKING ZONING ISSUES Tom Quigley CEO of Florida Cannabis Coalition created The Gluu a Tampa company that distributes non-cannabis products such as pipes rolling papers and vaporizers. He was among several speakers who talked about having bank accounts frozen because of their association with the industry. Joseph De Palma of CannaConnection Events in Denver who is planning a Science of Cannabis Summit in Miami in May said he has had about seven bank accounts shut down because he does business with cannabis companies. State-chartered banks in areas where cannabis has been legalized often are friendlier than federally chartered banks but some charge 10 or 15 percent fees he said. Credit card processors and factors often charge higher rates as well. Frank says some landlords also want to charge 25 to 30 percent premiums saying cannabis-related businesses fall into a highrisk category. He predicts there will be a shakeout in the industry because the economics might not be sustainable. For example what happens if the price of marijuana drops from 2 000 a pound to 1 200 Deep-pocketed investors are coming into the field Quigley said. One company has raised 93 million and another has raised 100 million. He knows investment bankers who are meeting with family offices to discuss opportunities. Joshua Goldstein a shareholder with Greenspoon Marder said the firm has about 150 cannabis clients and the most successful are vertically integrated. Multiunit operators have a better chance at success since there are so many economies of scale. Most of the pioneers that got into this business a few years ago have either exited or are exiting he says. A major challenge for the cannabis industry is that it can deduct only the cost of goods sold on federal tax returns which means they pay 70 to 80 percent of their net bottom line on taxes said Mary Galinas a principal with the Daszkal Bolton accounting firm. They can t deduct rent and benefits. One strategy is to segregate noncannabis business lines from legal products such as vaporizers but that has to be done very carefully--there is a high risk of being audited she said. Zoning issues were another panel topic. Rosa Davis a Miami-Dade County senior planner said commissioners have expressed concern about safety and security when it comes to dispensary locations. Alicia J. Lewis an associate with Greenspoon Marder said cannabis-related locations might need a special exception or conditional use that requires board or commission approval. There also might be requirements to be located no less than a certain distance from a school or church she said. In a worst-case scenario for entrepreneurs regulations in a city could be so strict that only a handful of locations might be available. The bottom line While there seems to be plenty of entrepreneurial opportunity in the cannabis field it also comes with plenty of potential challenges and obstacles. Natalie Villanueva and Stephanie Brown of Greenspoon Marder www.sfbwmag.com JANUARY 2017 33 SILVER LINING CATERING SLEventCatering W I N E & F O O D F E S T I VA L Create your own Wine & Food inspired event with Silver Lining Catering Paella by the Pool CHICKEN CHORIZO & MUSSELS PAELLA saffron chicken stock chicken thigh palacio chorizo pei mussels Tacos After Dark Put your taco ingredients to the test by wrapping in a bahn mi roll instead of a traditional shell. VALRHONA COCOA & DARK CHERRY TORTE milk chocolate mousse velvety ganache coffee liqueur Death by Chocolate Empanada Happy Hour VEAL & RED ONION EMPANADAS Flavor packed with ALL of these spices oregano cumin cinnamon cloves garlic orange & lime Learn more about our specialty services. 34 P 954-917-1020 ext. 314 silverliningcatering.com JANUARY 2017 www.sfbwmag.com N E W S TA D I U M NEW LUXURY EXPERIENCE As par t of the 50 0 million new stadium modernization all suites will be remodeled for the 2017 season. Enter tain your top clients prospec ts and employees with best-in- class benefits and amenities. F O R M O R E I N F O R M AT I O N P L E A S E C O N TA C T D AV E B A L D W I N AT 3 0 5 - 9 4 3 - 6 6 5 4 O R D B A L D W I N D O L P H I N S . C O M . SPORTS The 148 million Ballpark of the Palm Beaches will be the spring training home of the Houston Astros and Washington Nationals Baseball and More BALLPARK OF THE PALM BEACHES EMERGES AS MAJOR NEW VENUE Workers are finishing the 148 million Ballpark of the Palm Beaches which will host the Houston Astros and Washington Nationals during spring training beginning this year. The Ballpark of the Palm Beaches is transforming a former 160-acre solid waste disposal site into an economic engine--not just from the major league teams but also from amateur teams and other events such as corporate outings and concerts. Palm Beach County will lead the state in major league spring training teams with the Miami Marlins and St. Louis Cardinals already in Jupiter. To learn more about the project SFBW interviewed general manager Brady Ballard who has a dozen years of experience in professional baseball. He previously was vice president of Historic Dodgertown an 80-acre multisport facility in Vero Beach. The following transcript has been edited for clarity and brevity. A lot of our readers might not be aware of the scale of what you are creating at the Ballpark of the Palm Beaches. We feel we are like a new landmark in Palm Beach County which is exciting to see. It s a two-team spring training facility that s home to the Astros and Nationals. It s a 30-year partnership in which the county and the state are funding the facility through special tourism taxes and then the teams themselves are making the biggest single investment in a major league spring training facility in over 30 years. There are 13 baseball fields. The stadium has a capacity of 7 500 fans. Each team will have six practice fields. Then we will have five multipurpose fields on the south end. In addition to that there s a 12acre city park the teams are building 36 JANUARY 2017 www.sfbwmag.com and handing over. It will have a lighted basketball court a splash area playground and an almost 2-mile walking trail. What are some of the cuttingedge features fans will find at the stadium It is a more-modern layout. It replicates some of the spring training facilities being built in Arizona. The stadium is the centerpiece so even when you park you will be walking through practice fields on the way to the stadium. That will give people a unique perspective and a fun environment. A nice feature is the wraparound concourse. You will be able to walk a path circulating the field without being out of view of the playing field. There will be a grass berm in the outfield with a railing overlooking pitchers warming up. You never have to detach yourself from the action of the game. What types of dining options will there be There will be the typical ballpark fare such as hamburgers and hot dogs. There will be some country club-type elements with a slightly higher end a nacho stand where you build your own or get a Philly cheesesteak. Then we will have the suite level and party deck which are grouprelated with carving stations and seafood options. The party decks look like a fun way to watch games. There are two of them that can host from 30 to up to about 100. It will be kind of an all-you-can-eat type ticket package. You will have your own bar and a variety of seating options whether indoors or outdoors with patio furniture. Then on the suite level you have a food and drink rail that runs the length of the seating bowl. In the suite you don t have typical stadium seating--you have a lot of movable nice patio chairs. It s like opening up your Florida room to the patio. How are you doing on suite sales We have been getting commitments with a lot of business partnerships. There are 15 tickets for a day but you can add up to 30 tickets. We have single-game and full-year opportunities. It s more than just Major League Baseball coming here such as the Prospect Baseball Select Palm Beach Classic which will feature over 200 high school teams. We hope to be a year-round facility that can host destination amateur events collegiate events and then nonsporting events. We are already talking with concert promoters and festival organizers. Talk about the economic impact of the project. You start by looking at just the teams and the hotel rooms retail and the food they are going to bring about. An article in Institutional Investor gave an estimate of 23 000 room nights for the Marlins and Cardinals in Jupiter. The Palm Beach Classic will generate 4 000 to 5 000 room nights. The article quoted estimates of 58 million in personal income 12 000 in annualized jobs and 6 million in state and local taxes. How will businesses be able to use the park and its grounds for hospitality events luncheons or other business gatherings I think we are open to a number of ideas such as team-building events. We would offer what I would term a kind of playground for activities. The idea is to create a loosen up the tie leave the suit at home atmosphere. How many people get to come down to the field and take swings They love the experience of being on the field. Ballpark of the Palm Beaches General Manager Brady Ballard Tell us about your background. I had a couple of years at Dodgertown in its life after the Dodgers. Among the events we hosted were soccer and lacrosse. We had our own hotel onsite. Prior to that I spent 10 years in minor-league baseball in Daytona Beach and Jacksonville. I was general manager for four of the eight years in Daytona Beach at a Chicago Cubs affiliate. I was fortunate to see a lot of the guys who had an impact in the World Series when they were 18 to 20. I was a student athlete on the baseball team in college and I played for a year with the Rockford (Illinois) RiverHawks. Suites at the Ballpark of the Palm Beaches will open up to the exterior areas www.sfbwmag.com JANUARY 2017 37 COMMERCIAL REAL ESTATE COMMERCIAL REAL ESTATE Jordan Paul of NAI Merin Hunter Codman Jeremy Larkin of NAI Miami and Kenneth Kurtz of NAI Rauch Weaver Norfleet Kurtz & Co. PANELS GIVE INSIGHT INTO SOUTH FLORIDA CARIBBEAN AND LATIN AMERICAN MARKETS PANELS GIVE INSIGHT INTO SOUTH FLORIDA CARIBBEAN AND LATIN AMERICAN MARKETS Just in time for the turn of the year real estate services company NAI Global held its Florida Forum at Jungle Island. One panel talked about the South Florida market where the Miami condominium market is cooling while another talked about conditions in Latin America and the Caribbean where there has been political turmoil and financial crisis. Here are some highlights of the Q&A sessions which have been edited for clarity and brevity. SOUTH FLORIDA The panel had a trio of experts representing each of the region s three counties Jordan Paul is CEO of NAI Merin Hunter Codman which is based in West Palm Beach. Jeremy Larkin is co-chairman of NAI Miami. Kenneth Kurtz is a principal and president of NAI Rauch Weaver Norfleet Kurtz & Co. in Fort Lauderdale. What are the pluses minuses threats and opportunities in the overall market Paul Right now is probably the glory days for Palm Beach County. There is a tremendous amount of new residential construction. A lot of major homebuilders that bought a lot of land at great prices during the downturn are starting major planned communities. The county is very attractive for financial firms hedge funds and money managers. It has developed an interesting bioscience cluster. United Technologies is breaking ground on its Center for Intelligent Buildings which includes its Carrier and Otis divisions. Kurtz Broward doesn t have much developable land available. One 11-acre site on the ocean will probably go for 35 million. The economy is driven by tourism construction and the marine industry. Larkin Miami has become an economic hub for the region. The drivers are distribution the cruise industry and being the hub and capital of Latin America and Caribbean. There are a lot of headquarters operations and construction cranes. We can expect another migration of wealth and very wealthy Venezuelans and Brazilians to Miami for a better lifestyle and economic opportunity. State of the Markets 38 JANUARY 2017 www.sfbwmag.com South Florida tends to be a leading indicator of the economy nationally. Where are we in the cycle Larkin The bust cycle is coming in Miami-Dade. We will see some astronomically depressing data coming up. The information we are talking about today won t show up until April. Sunny Isles Beach is probably building 20 times more product than it needs and some buyers are not able to close on their purchase of units. Most South Americans are suffering because of business back home or currency issues. Because of devaluations they sometimes have to come up with 100 percent of the purchase price in their currency even if they put down 50 percent. If they get half their deposit back many are happy to sell. I know someone who had a 2 million deposit and would take 600 000 to get out of the contract. It s not just Sunny Isles but the downtown and Brickell markets. The industrial market is slowing down. The expansion of the Panama Canal hasn t kicked in as much as expected. Global economic activity has slowed. Office is stable but expect a decline along with retail. It has gotten expensive to come to Miami. Tourism is dropping off and [the] Zika [virus] is having an impact. I expect to see vacancies to start sliding up. Kurtz The Broward economy is still good. I ve seen an increase in rental rates. There has been a decrease in cap rates for all product types. There has been a decrease in vacancies as well. Paul It has been a very good year in terms of underlying fundamentals. For several years we have seen asset values race along and really peak based on a lot of capital in real estate investment trusts. This year [2016] has been a lot closer to reasonable and sustainable equilibrium. We saw the underlying strength of the market improve. Vacancy rates are down for offices from 12 to 14 percent. Some submarkets are even in single digits. Rental rates are up 15 to 20 percent over the past 12 months. We saw asset values coming down at the beginning of 2016 due to uncertainly in capital and lending markets but then it started to Kiernan Conway senior vice president credit risk management for SunTrust Banks says Florida has many of the nation s best-performing metropolitan areas and can take advantage of a shift in logistics from the U.S. West Coast to the East Coast seem very healthy with more reasonable prices. Palm Beach County is not driven by Latin America in residential and demand has been pent up. I have 500 000 or 20 million to spend. What should I buy now Larkin If you are wanting to buy distressed condos wait six to 12 months. Invest now in conservative cheap debt or buy an income-producing apartment building in Little Havana and Allapattah. You will see fairly rapid appreciation if you buy in the next corridor to get hot. Kurtz If I was an owner I would be looking to refinance and lock in rates long-term or sell and take advantage of low-cap rates. Interest rates may increase. If you are looking for a 500 000 investment I would look at multi-bay industrial. It has an all-time low vacancy rate of 4.7 percent. There are good increases in rental rates for industrial (7 percent cap rates) and the returns are better than office (6.5) and multifamily and retail (5). If you have 20 million I would probably look at one of the few vacant parcels which have a lot of upside or shopping centers. We ve also seen a lot of distressed suburban office buildings. Some that were trading for 12 million to 15 million are going for 4 million to 6 million. Some of the buildings that were trading for 120 a square foot are selling for 40 to 60 a square foot. Paul I would leverage to take advantage of interest rates which I think will go up. You just can t count on interest rates being like this. With interest rates where they are and given positive absorption I have seen some opportunities with office buildings where you can buy at prices well below replacement costs. Rental property can be good solid investments if you can lock in interest rates. In areas with new housing we are seeing retail come in and a lot of demand. There are some tight vacancy rates. We will need to bring services to some of the more remote areas in the county where development is taking place. LATIN AMERICA AND CARIBBEAN The panelists for Latin America were Arnaldo Oliveras Fernandez president at NAI Puerto Rico and director at NAI Miami Mauro Keller Sarmiento the www.sfbwmag.com JANUARY 2017 39 COMMERCIAL REAL ESTATE Argentina-based executive managing director of international business for NAI Global Larry Roberts CEO of NAI Bahamas Realty Commercial Jeremy Hurst owner of International Realty Group in the Cayman Islands Who is buying Roberts The market has been flat in the Bahamas with activity in the higher end of residential. The commercial market is very small. Most Class A offices are tenanted by offshore banks. Many have moved or downsized. There have been no new Class A buildings in the last four or five years. There are two major investments on the horizon. One is a hotel in the Grand Bahamas which is apparently being sold. The other is the Chinese have made a proposal to invest more than 2 billion in the forestry fishing and farming industry in the Bahamas. I would say that has received a very lukewarm reception. Hurst We are choosing partners for development. Dart Group has heavily invested in the Cayman Islands. There are new town centers and the new 266room Kimpton Seafire Resort & Spa. The real estate market is up from its lows in 2010--from 350 million to 700 million in Cayman dollars. Oliveras Fernandez Puerto Rico is experiencing heavy incoming foreign investment. Some properties selling for 30 to 40 percent on the dollar are second-generation boutique hotels. There are incentives for new property owners but that hasn t caused a critical effect on inventory. Sarmiento With the tax amnesty that Argentina is doing and Brazil just finished we expect more investment flows. Capital groups have to be more aggressive to get good cap rates. Cap rates could be double figures in some areas of Latin America. The opportunity funds are first but private money seeking returns leads me to expect more investments are coming. Roberts We have seen an inflow in residential investment especially in Abaco Grand Bahama and Eleuthera. A lot of Florida yacht people have bought homes in the islands. We don t see any real commercial investment. Oliveras Fernandez A handful of Puerto Rican investors are investing in the states and other markets where properties that have a decent cap rate. Act 20 22 incentives in Puerto Rico have tax relief for foreign investors. Billionaire John Paulson and some other investors are buying property like there is no tomorrow. Foreign investors don t have to pay capital gains taxes. Are other corporations making investments Oliveras Fernandez Lufthansa Technik has started a repair maintenance and overhaul operation in Puerto Rico that has generated 350 jobs. The Mall of San Juan which is a Taubman property has opened. Sarmiento Previous governments were not friendly with foreign corporations but we had examples like J.P. Morgan setting up a service center and hiring 3 000. I think corporations will be coming more aggressively. It s a good place to service clients. Hurst The Caymans are the hedge fund capital of the world. We are seeing smaller family offices opening up and trust companies. I am seeing Cayman as a potential place for investment in Cuba which is only 30 minutes by plane with daily flights. Roberts We rely first on tourism and then financial services. Small private banks and wealth managers seems to be the trend. Large companies such as UBS and Credit Suisse have downsized tremendously. The Bahamas have various incentives. One is the Hotels Encouragement Act. You can build a hotel and all the materials come in duty-free. Import duties can be 25 percent of costs without the Encouragement act. The City of Nassau [Revitalization] Act offers similar concessions to developers. If I have 1 million and want to buy in your country what would I buy What if I have 20 million Oliveras Fernandez You will find a lot of second-generation properties for a little over 20 million. For 1 million I would look at land near the capital Karen Gilmore vice president and regional executive at the Federal Reserve Bank of Atlanta told the audience that the Fed has been careful to avoid surprising the public about its plans for redevelopment. Construction is so inexpensive in Puerto Rico that you can redevelop. Roberts For 1 million I couldn t help on the commercial side. For residential you could get a beautiful beachfront penthouse. I just closed yesterday on a large commercial property the UBS complex for just under 18 million. We don t have many of those available. But for 20 million I could sell you a developed private island. Hurst For 1 million you could get just under an acre of beautiful white sand beachfront that will go up in value. For 20 million you could get one or two Class A midsized properties and probably a return of 9 to 9.5 percent net. Sarmiento For 1 million I would probably buy residential. For 20 million I would buy a vineyard-- it s a lifestyle change--or invest in a provincial shopping center. 40 JANUARY 2017 www.sfbwmag.com LET US TAKE CARE OF THE IT SO YOU CAN GET BACK TO RUNNING YOUR BUSINESS. WE RE AN IT SERVICES PROVIDER LOCATED IN HOLLYWOOD FLORIDA. WE VE BEEN IN BUSINESS SINCE 1977 HELPING BUSINESSES GROW BY BUILDING PLANNING AND OPERATING THEIR IT ENVIRONMENTS. WE VE GOT THE PERFECT MANAGED IT SERVICES PLAN FOR YOUR BUSINESS ALL BACKED BY OUR AWARD-WINNING TEAM. UNLEASH THE POWER OF WORRY FREE IT 2843 PEMBROKE ROAD HOLLYWOOD FLORIDA 33020 WWW.CONNECTIONS.COM 954-920-9604 Shannon Allen 42 JANUARY 2017 www.sfbwmag.com PROFILE PROFILE BY MICHELLE F. SOLOMON PHOTOS BY APRIL BELLE PHOTOS Restaurant Possible With the increasing popularity of Grown her fast-organic concept Shannon Allen is changing the foodie landscape in Miami In September Grown opened two concessions at Hard Rock Stadium--on the BankUnited Club Level and at Section 148-A which continues the Grown concept of Real Food Cooked Slow For Fast People. It was great to see people s reactions knowing that there was an alternative to regular stadium food--a place for vegans paleos families with children with food allergies those looking to stay on their diets Shannon says. She didn t always aspire to open a restaurant. In Boston at Northeastern University she majored in music. Shannon Walker Williams started a girl group named Shades with three other women she met at the university. They were signed to Motown Records. The night before the group s first single went into stores she met Ray at a New York restaurant. He had just been picked fifth overall in the 1996 NBA draft by the Minnesota Timberwolves. He was out celebrating with his family she recalls. It was one of those our eyes met across a crowded room. When Grown opened its doors in March many customers were surprised to see that the person behind the counter taking their order and serving them lunch was none other than professional basketball player Ray Allen the top 3-point shooter in NBA history. But Shannon Allen says that s the kind of person her husband a 10-time NBA All-Star athlete is. We ve been together for 20 years she says. We re married we re partners we have five children together and to be in business together has been very inspiring to me. He has such a winning attitude. It s no accident why some people are truly great at what they do. The Miami Heat brought the Allens to South Florida in 2012 where he played for two seasons before stepping away from the game. Her dream was to open an organic farm-to-fast-food restaurant and the Allens did that in South Miami earlier this year. Now they have expanded setting a precedent by becoming the first completely organic restaurant inside a U.S. sports arena. Shannon credits Ray with helping her change her eating habits. Busy traveling with Shades and spending time in the studio her diet consisted of coffee Coca-Cola and Cheetos. Ray was the one that taught me that whether you re an accountant a fitness consultant a teacher or a busy mom it all starts with what you put in your mouth she says. Referring to Ray At 42 years old you don t have 3 percent body fat because you re living off of complex carbs and fried foods. Ray walks the walk and his commitment to diet and exercise has been for his whole life. He was the one that taught me that to have stamina you need to eat healthy. After they were married she devoted time to learning about the best foods for high-performance athletes. She started meeting with his team nutritionist and would try to incorporate the suggestions in meal planning. In 2008 the family moved from Seattle to Boston when Ray was traded to the Celtics. She shot a TV series pilot in her kitchen and ended up hosting a show called The Pregame Meal which led to a cookbook of the same name. That same year their 17-month-old son Walker was diagnosed with Type 1 diabetes again changing the way Shannon looked at food. It was the incident that planted the seed for Grown. I was pregnant and Ray was on the road she recalls. I had the kids out and Walker had a low blood sugar episode. I looked around the highway and I knew I needed to get him something but I didn t want to have to get out of the car. I didn t have time to go into a market get fresh food and go home and prepare it. This was a case of needs food now. She scrambled for a fast-food option. But the last thing you want to add in when someone has a medical condition is something processed or something from a microwave or something that comes out of the back of a truck she says. There was nothing. I called a friend who was an executive chef at a restaurant she recalls. I said I need real food for my son. Can you meet me in the parking lot of the restaurant with four orders of gluten-free panko-encrusted chicken tenders and a bowl of chicken tortilla soup and an unsweetened iced tea She was able to get Walker s blood sugar under control after spending 63 for the order. What single mom or a grandparent can afford 63 for what was basically four kids meals she says. The crisis passed. Walker was safe. She put the children to bed. She was worn out both physically and mentally from the ordeal. I remember sitting on the shower floor pregnant and crying she says. I was so frustrated. I got out of the shower and looked in the mirror and thought Something has to be done. 44 JANUARY 2017 www.sfbwmag.com Shannon and Ray Allen She called Ray I said to him no one is going to save us. No one else has the guts to create a fast-food concept that s healthy and I m going to do it. Someone needs to do this so it might as well be me. Eight years in the making Grown became reality when the Allens moved to the area. (Their home is in Coral Gables.) If you live in a place where it s always bikini season people are highly motivated to care more about their bodies about everyday fitness about eating right she says. Todd Kiley the chef whose panko chicken tenders helped get Walker s blood sugar on track now oversees the organic menu at Grown--where yes the chicken tenders are available. There s a lot of Shannon and Ray in Grown she says. They wanted to create a place for families. When you walk in the door it should smell like fresh food like home cooking she says. We don t have a fryer or a microwave. We make our marinades we chop our fresh garlic and we bake fresh organic breads. We prepare everything on site. The doors on the exterior of Kindergarden an event space inside the restaurant which is used for community and private events are from Shannon s parents house in Connecticut. I asked my dad if he could deconstruct the horse barn and ship them down here for me so I could have a piece of my childhood here. She has further plans for Grown but says it s still too early to talk about them. It is still a new concept for people but it s not anything that people can t wrap their brains around she says. I had a mother tell me the other day You know what the best thing is about Grown I can tell my kids to order whatever they want. Havana Salad with shrimp PRO-FI FACILITY MAINTENANCE 8211 S. Dixie Highway Miami 305.663.4769 grown.org Grown GENERAL CONTRACTING PRESSURE CLEANING - PORTER HANDYMAN SERVICES www.profifm.com 954.946.4340 info profifm.com www.sfbwmag.com JANUARY 2017 45 PROFILE BoardroomPR led by president Julie Silver Talenfeld (third from left) has grown to 16 staff members BoardroomPR president is still a journalist at heart BY KEVIN GALE On Board Julie Silver Talenfeld s BoardroomPR is one of the top public relations firms in South Florida but she s still a news junkie at heart. That s not surprising if you know her family. Her father Ben Silver was a reporter for Channel 7 in Miami and CBS News nationally. He reported on the Cuban missile crisis and was the first reporter on the scene after Ted Kennedy s fatal car crash in Chappaquiddick. Her sister Beth reported for The Associated Press and her brother Kurt was an award-winning investigative reporter before joining the FBI. Julie Talenfeld considers herself a news junkie since chasing down fire trucks and police cars while growing up in South Florida. She says she always felt compelled to know what was happening and her passion for news is still apparent today. Talenfeld uses Facebook groups as a creative outlet for her love of reporting. Plantation Nation reflects the city she has lived in since she was 11 and has more than 1 000 members. Fort Lauderdale Real Estate Developments has 368 and South Florida Legal Eagle has more than 500. Her agency BoardroomPR has a diverse group of clients including those in law banking luxury retail and high-end real estate. 46 JANUARY 2017 www.sfbwmag.com Talenfeld s career started as an intern at CNN in Washington D.C. She then worked as a reporter a Miami news-talk radio station after graduating from the University of Florida. She received the UF Alumni of Distinction award in 2011 from the College of Journalism and Communications dean who was her college adviser. She loved delivering business news and joined a brokerage firm to produce a daily radio show on the stock market. She then launched the Florida Business Report and syndicated it. Early on she interviewed David Moss the president of Miami-based Catalina Lighting and told him his press releases were poorly written. She said he should hire her to handle his PR and he did. When the brokerage firm was sold to a New York investment banking firm she wrote a plan to form a spinoff PR company. The chairman supported it and she named it the Communications Board. When the stock market crashed the firm went south and the chairman suggested she take the PR agency. A tweak of the name and Boardroom Communications was born now branded as BoardroomPR. One of her first clients was attorney David Singer who was fighting the Florida Bar over advertising rules. She told him she was smart and aggressive and could save him money on benefits. She still works with him today. Talenfeld also still has her second client Boies Schiller Miami managing partner Stephen Zack who she initially called to provide the other side of those Bar advertising stories. She gained new clients quickly including the one that licensed Wheel of Fortune and Jeopardy for video games and high-end Fort Lauderdale real estate agent Tim Elmes. She helped reposition Canyon Ranch Miami Beach when Lehman Bros. took control and today she works with dozens of clients including the Paramount Fort Lauderdale Beach condominiums the Gale the homebuilder Minto Group and City National Bank. Seven of the 16 staff members have been with Boardroom for more than 15 years Talenfeld says. Seven are former news reporters from outlets including The Real Deal the Daily Business Review and WPLG-Channel 10. The company s COO is Don Silver Talenfeld s older brother. He worked for Duracell in sales and marketing before joining. It s a brother-sister act says Talenfeld whose firm is celebrating its 25th anniversary and is giving 25 000 to the new South Florida Holocaust Museum in Dania Beach to help mark the milestone. Giving back is our real reward she says. And it s one I don t have to chase down. Time to trade the corner office for your own little corner of the world A Transworld business advisor can get you there. Every day Transworld Business Advisors connects quality top-paying acquirers with business owners ready to sell and move on to the next stage in their careers. As the world leader in business sales franchising and mergers and acquisitions Transworld has access to a huge database of individual domestic and immigrating buyers and strategic corporations looking for the right business opportunity. And Transworld has the expertise to ensure any business sale goes smoothly. So whether you re ready to sell your business or buy an existing business or franchise contact a Transworld Business Advisor for a free consultation today. Andrew Cagnetta OWNER CEO 800.205.7605 t world.com www.sfbwmag.com JANUARY 2017 47 CEO CONNECT POWERED BY Ryder System Chairman and CEO Robert Sanchez is interviewed by SFBW Chairman and CEO Gary Press Robert Sanchez drives innovation and growth at Ryder System Robert E. Sanchez is chairman and CEO of Ryder System a Fortune 500 fleet management dedicated transportation and supply chain solutions company. He was named CEO in January 2013 and chairman in May 2013. Over the course of two decades at Ryder Sanchez has held many senior executive leadership positions including president COO CFO CIO and president of fleet management solutions. Since 2012 he has led the development and execution of Ryder s growth strategy which focuses on businesses that do not yet outsource their fleet management and supply chain functions. Under his leadership the company has achieved record revenue and earnings levels. Sanchez is on the board of Texas Instruments the Truck Renting and Leasing Association the United Way of MiamiDade St. Thomas University the Foundation for Human Rights in Cuba and the Association of Cuban American Engineers. He earned his MBA from The Wharton School at the University of Pennsylvania and a Bachelor of Science in electrical engineering from the University of Miami. Sanchez was interviewed at East Miami the new hotel at Brickell City Centre by SFBW Chairman and CEO Gary Press. The following transcript has been edited for brevity and clarity. What was your early life like and how did you end up getting a degree from the prestigious Wharton School I m very fortunate that I grew up in Miami. I m not only the CEO for Ryder but CEO of a Fortune 500 company in my hometown. My parents are Cuban exiles and I grew up in Westchester. My parents were middle-class and taught me about the value of hard work. I started a small computer consulting company--building Driver s Seat 48 JANUARY 2017 NOVEMBER 2017 www.sfbwmag.com www.sfbwmag.com CEO CONNECT computers and reselling them. I realized pretty quickly that I didn t know anything about business. It s a company I had started with three other people who had studied at UM. I went to Wharton and I wanted to be a consultant. I got a job offer in Chicago with a consulting firm. My wife had moved up to Philadelphia and had grown up in Fort Lauderdale. She spent a year in Center City Philadelphia. She was not happy about that. When I told her I got this wonderful job in Chicago she said You are not going to Chicago. I m not going to Chicago. We are going back to Miami. The only company hiring in Miami was Ryder. I thought Yellow trucks Are you kidding me That s not what I want to do. But from day one I loved it. We do business with 50 000 companies from GM to CVS to the local bakery down the street. You get to learn how so many companies do business. You have the role of both CEO and chairman which some companies split these days. What are the pros and cons of combining the roles vs. splitting them I think it can work either way. At Ryder I m chairman and CEO because that s how we ve always done it. We have an outside director that s a lead director. If I do a bad job as CEO I will get fired equally whether I m chairman or CEO. Are we going to have driverless technology in commercial trucking at some point and when might that be Are there specific innovative initiatives that Ryder is exploring in this space There have been a lot of changes in the past 10 years due to regulations. In the next 10 years there will be even more change because of what you mentioned. Autonomous trucks Uberization electric trucks and new technology--these things are all going to happen. I m not sure how many people saw a video of the Otto system that drove a beer truck 120 miles. The driver was in the back seat. The company doing that is making incredible progess on this driverless technology and they are now owned by Uber. There is no doubt in my mind this will be technology we will be using in the next five or 10 years. The issue will be liability such as if the truck gets in an accident and there s a software glitch. You are still going to have to have someone sitting there baby-sitting things. It s an incredible change. Karen Landa Anicristy Pacheco and Lori Castle Elias Mualin and Gustavo Toro www.sfbwmag.com JANUARY 2017 49 CEO CONNECT The number of hours that a driver can drive a truck is limited. I think that will change. Ryder is working with numerous electric truck companies. Ryder has a focus on hiring veterans. Why are veterans important to Ryder and what are some of the things that Ryder is doing to attract and retain veterans employees We have placed a big emphasis on hiring veterans. We are a main sponsor of Hiring Our Heroes a U.S. Chamber of Commerce Foundation program. We are just at about 4 500 veterans since November 2011. It s been great. It s not only the right thing to do but it is great business. You get people that know how to follow up on commitments and get things done with a high level of integrity. If you are a veteran we will match you up with a veteran buddy to help acclimate you to our culture. We link job codes on the website to job codes in the military. We are training current military personnel at bases on Ryder jobs 90 days out. As a public company chairman and CEO how do you balance the short-term expectations of Wall Street vs. the long-term need to invest in the future I would say long-term is important as long as I hit my short-term numbers. It s a tough balance because you always have to do the right thing for the company but in the long term it puts tremendous pressure on CEOs to make numbers. If you make your numbers nothing else matters. If you don t make your numbers nothing else matters. I take making numbers very seriously. We try to give guidance that we think we can achieve. For the longer term we say here s what we are trying to achieve. What are some of Ryder s most successful innovations The things we do whether maintaining trucks or running truck fleets stem from how it started to get more difficult because of regulations-- everyone wants cleaner air and safer roads. Air coming out of a tractor trailer is cleaner than the air coming in. The amount of after-treatment that they do to these vehicles is incredible. That s very good but expensive and complex. You have to be like a rocket scientist to maintain a diesel truck today. A lot of companies trying to do it on their own came knocking on the door of Ryder. We have 7 000 truck drivers and 6 000 diesel mechanics and expertise in what s difficult. The other thing is changing the culture at Ryder to be a growth company. What keeps you up at night It s been a long time since we had 3 percent GDP growth. There is no substitute for GDP growth. When GDP is growing a lot of stuff gets moved around. We have lived in 1 to 2 percent GDP growth the last nine or 10 years. Having lived through 2008 we are all kind of babies of depression. You Robert Sanchez Rich Lopez Jordan Knowles and Martin Levy Chris Hake Annabel Harvey and Beau Helers 50 JANUARY 2017 www.sfbwmag.com CEO CONNECT always worry about waking up and it will be a distaster. What s the value proposition for using Ryder for outsourcing They have to save money or they don t want to do it. They save 10 to 15 percent typically. We keep trucks up and running better than they can. We can run deliveries and the supply chain better. Our biggest dedicated customer is CVS. We deliver to about 70 percent of stores. It s a Ryder truck and a Ryder driver. We do a lot of logistics for automotive companies such as parts for GM and Toyota. We provide trucks to almost any business you can imagine. We do business with the company doing almost all the buns for McDonalds. They need trucks to move the buns. We make sure those trucks are up and running. If they are ever down there will be another Ryder person there within two hours. In the wake of the election where do you see growth over the next several years I think it s hard to believe the U.S. economy cannot grow faster than 2 percent a year. This is the best country to do business in by far. It really is. We need business to feel like government is on your side. I don t know if it will be different in a Trump administration but I hope it is. We talk to a lot of small businesses. They have to think Do we sign a six-year lease on new trucks Do we build a new warehouse to distribute Whenever there is uncertainty they say We ll wait. There is the potential to unleash a tremendous amount of power in the economy. What do you do in your spare time I have three sons. Two are in college and one is a senior in high school. I have spent the last 20 years going to baseball games. I got into playing golf a little bit. I m trying to get better. I love to go fishing. I m blessed. I still see friends every week that I went to kindergarten and high school with. In terms of acquisitions are you looking for a specific geography Our growth has been organic which is the best kind of growth. We do rollups in trucking and leasing. Gator Leasing was a company in Miami we bought seven or eight years ago. There are little Gator Leasing companies all over the country. Those are great acquisitions. We are looking for capabilities in logistics we don t have. We are in auto and high-tech. We weren t in food. We bought a company six years ago called Total Logistic Control and do business with Kellogg s and ConAgra. We touch every part that goes on a Toyota truck. We touch every Gatorade east of the Mississippi. We touch most of the fries McDonald s uses in the Midwest. One industry we are looking for is health care. We would love to be in health care logistics. How do you drive innovation You have to start with small steps. You ve got to get people to do little simple things you are going to do differently. The first product we rolled out was on-demand maintenance. It took two years to get it off the ground. It wasn t like we were splitting the atom. Getting culture change was tough. You take small steps and try to get bigger things. Fernando Tapia CEO Connect was held at East Miami in Brickell City Centre www.sfbwmag.com JANUARY 2017 51 S I T T I N G O N T H E E D G E O F FA B U L O U S . Dewar s Rail Seating at AmericanAirlines Arena is an ideal experience for Miami s elite movers and shakers. Your ticket gives you a superior view of AmericanAirlines Arena inside the posh Dewar s Clubhouse--as well as valet parking VIP entry into the building a Chef s Table of deliciousness and generous servings of house beer or wine. GET YOUR TICKETS ON DEWARSRAIL.COM OR BY CALLING 786-777- HOOP. 52 JANUARY 2017 www.sfbwmag.com KEEP YOUR NETWORK SAFE FROM THEIR NETWORK Hackers thieves and other criminals are increasingly targeting corporate data. C3 security experts can help identify and eliminate security risks. ARE YOU COVERED 110 E. ATLANTIC AVENUE SUITE 420 DELRAY BEACH FL 33444 TELEPHONE 888-571-8190 FAX 561-982-4120 WWW.C3CLOUD.COM C3OFFICE C3OFFICE CLOUD COMPUTING CONCEPTS www.sfbwmag.com JANUARY 2017 53 Innovation Strategies Small steps and long-term focus both have a place By Kevin Gale EXECUTIVE ROUNDTABLE Innovation came in all shapes and sizes at the November meeting of the South Florida Executive Roundtable. Innovation is a super-high priority for panelists Lorenzo de Leo managing director of Rokk3r Labs and Thomas Wenrich CEO of the The LAB Miami. Both specialize in turning ideas into reality. Panelist Mario Murgado is in a long-established industry as president and CEO of Brickell Motors but he talked about how he looks at other industries to get ideas for benchmarking. Andre Teixeira executive VP and CFO of the Graham Companies joked that his business could do its monthly operations without computers but is looking carefully at processes and procedures amid a major construction wave. SFBW is a media partner with the Executive Roundtable a monthly invitation-only gathering of senior executives. Here are some of the key takeaways. INNOVATION CAN BE SMALL Rather than spend money on multimillion-dollar experiments The LAB Miami helps facilitate smaller experiments that are focused on trying to answer specific questions Wenrich says. If an idea doesn t work it goes on to the next one. He wants to help large companies understand the process and incorporate that as part of their innovation strategy. LEARN FROM OUTSIDE YOUR INDUSTRY Murgado likes to benchmark to companies in the hospitality industry including The Ritz-Carlton Four Seasons and the Mandarin Oriental. He likes Neiman Marcus as a role model in retail. He ranks Best Buy second to Google in digital prowess. NO INNOVATION DEPARTMENT Thinking about creating an innovation unit Don t--innovation stops being effective when you put it in a room and put a tag on it de Leo says. At Rokk3r innovation is part of the infrastructure of the organization. Everybody is responsible for the innovation in his or her specific area. MATURE COMPANIES CAN BE DELIBERATE The Graham Companies is never first to market with anything Teixeira says. Instead its approach is to apply existing technology to become more competitive cost efficient and offer a higher level of service. The company has regular meetings about service but uses slower summer months to take a deep dive into potential innovation projects. DON T FEAR FAILURE Wenrich talked about the challenges Open English had getting off the ground even though it has turned into a business with 100 million revenue. Initially it went to the market offering a free service with ads for its language education section. That wasn t viable. Then it tried a freemium approach where some content was free but consumers had to pay more. That was a total disaster. No one upgraded he says. The ultimate model that worked was selling on the phone and having live classes. TRAINING IS ONGOING Training people is the new challenge de Leo says. The pace of change is so fast that the moment you are done with the training everything you learned is obsolete. Instead of trying to focus on specific skills he says it s more about training people to keep learning and adapting to changes. MEET THE HIGHLY EDUCATED CONSUMER Consumers used to walk into a car dealership with a newspaper under their arm but now they are unlikely to come in without having done research on the internet Murgado says. The modern automotive salesperson must be a great listener and an information specialist to answer remaining questions. He also wants to break down barriers from customers to let them communicate directly with repair technicians. If a technician can send a picture to a customer s smartphone and engage in conversation that s a plus. BE AWARE OF LONG-TERM TRENDS While the Graham Companies is focused on the near-term about having the right processes and systems in place for developing a lot of new projects Teixeira is also keeping an eye on the possibility of autonomous driving cars. Right now people want to park close to buildings but what if the car of the future could drop you off and park five or six blocks away That would have a major impact on developers he says. The South Florida Executive Roundtable panelists Lorenzo de Leo of Rokk3r Labs Andre Teixeira of the Graham Companies Mario Murgado of Brickell Motors and Thomas Wenrich of The Lab Miami 54 JANUARY 2017 www.sfbwmag.com EXECUTIVE ROUNDTABLE www.sfbwmag.com JANUARY 2017 55 WEALTH How Life Insurance Protects Your Heirs from Estate Taxes BY HOWARD KAYE Need for Liquidity At my firm we walk our clients through all kinds of estate planning scenarios. Recently we helped a new retiree establish a series of trusts and start the process of moving assets inside. Her concern was simple when she dies she doesn t want her assets to go through the long and costly probate process. She wanted a plan that would allow her to transfer her assets smoothly from one generation to the next. Once we went through her long list of assets it became clear that if she were to die today a significant tax bill would follow because her asset levels exceed the current estate and gift tax exemption. What s more because of the illiquid nature of some of those assets her plan to split her estate evenly between her children would be nearly impossible. So we worked with her to remove assets from her estate and improve the allocation of her resources to better meet her needs and those of her heirs. Too many of us build up an impressive net worth through decades of hard work and then lose a chunk of it through poor planning and avoidable taxation. Having a liquidity strategy--a way of generating an adequate amount of cash to properly settle your estate--should be a crucial component of every estate plan. And life insurance plays a critical role in this process. COVERING ESTATE TAXES Imagine a scenario where you die with 8 million in stocks and bonds but 25 million tied up in real estate. You have three children and want your assets divided equally between them. One problem here is that your liquid assets might not be enough to cover your estate tax bill and you still have the issue of dividing up highly illiquid real estate. Trying to quickly sell your properties after your death in order to build up cash to cover estate taxes is a nightmare that could lead to discounted valuations and many avoidable costs and fees. Even if your heirs could gather enough cash to pay your estate taxes by selling your stock and bond portfolios they might run into issues when liquidating IRAs and creating taxable income. For example a 1 million IRA distribution could easily result in a 40 percent tax rate especially if you live in a state with a high tax structure. This can take a huge chunk out of your heirs inheritance. If instead you fund a life insurance policy early on you solve several problems at the same time. First the life insurance proceeds can be excluded from your taxable estate if a properly structured irrevocable life insurance trust is put in place. Second you create a liquid pool of tax-free cash that can be used to distribute money to your kids to satisfy estate settlement costs while avoiding an unnecessary fire sale. Finally that same pool of cash can buy some time to properly sell off your real estate portfolio. BUSINESS SUCCESSION PLANNING Estate planning can be tricky enough when you re just dealing with a portfolio of stocks and bonds. Throw in a family business and things can get sticky particularly when certain members of the family are more involved in the business than others. Life insurance offers a unique solution in terms of providing a lump sum of cash in the event the business owner dies or becomes chronically ill. Also because life insurance is generally funded through annual premiums starting many years in advance it ensures the liquidity will exist when needed. This can make all the difference between a succession plan existing and actually being implemented. While life insurance can play a valuable role in business succession planning it is part of a broader conversation about how the business will transition in the future not only if the owners die or become disabled but also if they decide to retire. An adviser can help you think through these scenarios and work out solutions. DEVELOP A PLAN WITH AN ADVISER No one wants a few planning errors to cost their family millions of dollars that could have been used by future generations. This is why it s important to have an estate liquidity plan in place especially one backed by strong life insurance policies. If you fall into the trap of inefficient resource allocation instead the government will take a huge bite after you die. Avoid it by reviewing your estate plan. Contact Howard Kaye for a no cost no obligation comprehensive review that will help you determine the best approach to create and preserve wealth for your family. He can be reached at 561.417.5883 or hkaye howardkayeinsurance.com. 56 JANUARY 2017 www.sfbwmag.com WAS YOUR ROOF ABLE TO WEATHER THE STORM Latite Roofing...ready when you are Call Latite for all your repair and re-roofing needs. Latite is the largest roofing company in South Florida and has been serving residents and businesses for over 70 years. Ask for rate code Life3 to receive 10% off any repair or 300 off re-roofing. Southeast Florida Corporate Headquarters 2280 W. Copans Rd. Pompano Beach FL 33069 800.NEW.ROOF (639.7663) WWW.LATITE.COM www.sfbwmag.com JANUARY 2017 57 CCC 1326510 RESIDENTIAL REAL ESTATE 58 JANUARY 2017 www.sfbwmag.com Bimini Getaway Luxury development with an island vibe is a 20-minute flight from South Florida BY KEVIN GALE Rockwell infiity pool www.sfbwmag.com JANUARY 2017 59 RESIDENTIAL REAL ESTATE Rafael Reyes in front of one of the Rockwell Homes which is all glass at one end Ernest Hemingway brought fame to Bimini as an ideal spot for deep-sea fishing but he would hardly recognize parts of the island these days. He would still find incredible fishing bars and fresh conch salad but the northern tip of Bimini is in the midst of a total transformation. The key driving force is RAV Bahamas a subsidiary of Miami s Capo Group which built the 850 million Bimini Bay project. RAV attracted Genting Group as a partner so Bimini Bay is now managed by Genting s Resorts World Bimini. It includes beachfront condominiums villas a 325-room Hilton hotel a casino and a 280-slip marina that s called the largest in the Bahamas. RAV s current venture is Rockwell Island. It offers homes with ocean views in the front and room for 80- to You can t escape an ocean view on Rockwell Island... although there are also plenty of views of the bay too. 120-foot docks in back on the bay. Rockwell Island will include an 18-hole golf course with even-larger homes a boutique hotel and a nature preserve says President Rafael Reyes. The scope of RAV s operations are much broader than you would find at a typical developer. RAV s crews dredge and use the fill to create new land or raise the elevation of existing land. They handle all the road and utility infrastructure water sewer high-voltage power lines fiber optics and more. RAV also makes concrete blocks pavers and roof trusses on the island. That s a major plus given cost of shipping materials to Bimini. Reyes says he studied classic coastal architecture and sketched out the styles for the development s Balinese Feng Shui Moorish Palladian and Plantation models. 60 JANUARY 2017 www.sfbwmag.com Patrons at the Hilton bar can keep their feet wet while having a cocktail The designs have all the master bedrooms on the second floors facing the ocean. You can t escape an ocean view on Rockwell Island Reyes says although there are also plenty of views of the bay too. A DIAMOND IN THE ROUGH Reyes father-in-law developer Gerardo Capo didn t know things would be so complex when he visited the island in 1995 on a fishing trip with his cousin. Capo really wasn t into fishing so he did what any developer loves to do look at land Reyes says. He found a parcel on Bimini and fell in love with it. He had to painstakingly find the owner which was a bank in Austria. Capo thought he got a bargain on a relatively small parcel. Instead the survey showed 750 acres with five miles of pristine shoreline Reyes says. He thinks he has made best deal in the world until he started developing the property Reyes says. After considering all of the necessary costs such as contractors asking 7 million to dredge a channel in the bay RAV chose the DIY route. Wall Street investment bankers The Hilton has 325 rooms along the water The Resorts World Bimini casino weren t interested in providing financing either. They said it didn t make sense to take the risk Reyes says. A turning point was the launch of sales at the Miami International Boat Show in 2003 when 38 units were sold. People were giving us checks one after another. People love the island life and are ready to overcome obstacles Reyes says. Genting was interested in the project as early as 1997 because the company s chairman at the time had a long-standing interest in Bimini but the Resorts World partnership didn t happen until 2010. The new Hilton with its array of restaurants and a spa has been a big selling point for Rockwell Island Reyes says. The steady flow of guests also spurred more air service. Silver Airways provides service from Miami International and Fort LauderdaleHollywood International airports and Cape Air provides service from Fort Lauderdale and the seaplane base on Watson Island in Miami splashing down near the Hilton. Reyes expects a resumption of fastferry service to the island after a previous service was underused. www.sfbwmag.com JANUARY 2017 61 RESIDENTIAL REAL ESTATE An idyllic afternoon at Paradise Beach along the road to Rockwell Island CHILDHOOD IN BIMINI Reyes who lives with his family in a home near the Hilton is enthusiastic about Rockwell Island. I knew this was a marketable property because I have sold land here. A lot of developers see negatives such as having to go via seaplane Reyes says. Reyes says he was practically raised on the island. His father also named Rafael an executive with Southern Wine & Spirits had been sponsoring fishing trips to the island since his son was 9. I am close to the locals and have much admiration for the family values and idiosyncrasies of the island Reyes says. Rockwell Island is an enclave with its own security gate flanked by two ponds on either side. Its first phase has more than 100 residences with almost an acre of land said listing agent Maria Padilla of Keller Williams Realty in Coral Gables. About 25 percent of the buyers are coming from South Florida Reyes says. Others have come from Mexico Venezuela Brazil Ecuador Malaysia and Russia. Proximity to South Florida has been a key selling point Reyes says. Bimini is only 40 nautical miles from the mouth of Government Cut at Port Miami. It s great to leave work a little early on Friday on your boat and be here in an hour and a half Reyes says. Flights from South Florida take about 20 minutes. A row of 15 houses was either shelled in or nearing completion during a late summer visit by SFBW. One was fully complete. Infrastructure crews were nearly finished on the first phase and Reyes was ready to move them further along the island. Ultimately plans call for a boutique spa-style hotel with 24 bungalows 400 condo-hotel units and 63 estate homes along the golf course which was developed by P.B. Dye of the famed course-design family. Plans also call for an eco park and Reyes RAV Development sold out Bimini Bay envisions zip lines that take visitors into the canopy. Despite all the existing and future amenities the big draw for many buyers is having their families together in an otherwise-hectic world. It gets to the point where people want to step back and go to an island setting Reyes says. Everything is a little slower here. 62 NOVEMBER 2017 www.sfbwmag.com Entrepreneurs Organization The Entrepreneurs Organization (EO) is a global business network of 11 000 business owners in 150 chapters and 48 countries. Founded in 1987 by a group of young entrepreneurs EO enables small and large business owners to learn from each other leading to greater business success and an enriched personal life. The EO South Florida chapter is one of the top 5 chapters worldwide and helps leading entrepreneurs learn and grow through peer-to-peer workshops once-in-a-lifetime experiences and connections to experts. Visit EOSOFLO.com Ask a South Florida Entrepreneur Davide Frau Dan Abbate Founder Start Up Your Passion - StartUpYourPassion.com We are a Talent & Business Consulting firm. We enable early stage Entrepreneurs to turn their passion into a business and established businesses and team members to regain their passion. Proudest Accomplishment We helped an enterprise that was on the verge of bankruptcy. We reshaped their model from the top down approach to a network of specific interrelated responsibilities. We developed a team-first culture by including all employees in decisions that have a direct effect on their job and ultimately making the company profitable within 6 months. Greatest Challenges Using technology and artificial intelligence to facilitate human interaction. Business consulting is rapidly changing and expanding and will soon be reshaping the way people learn about entrepreneurship and build their businesses. What motivates me I want to change the world I wake up every day thinking about ways to make the world a better place and assisting people to lead more enjoyable and fulfilled lives. What do you love about what you do I love to help people pursue their talents and make sure their passions are prevalent in their life. Most memorable EO Experience Listening to Doctor Rao Srikumar discuss mindfulness his words literally changed my life. I have never looked back. What distinguishes your company We have created a proprietary algorithm which allows us to develop and shape the companies we assist. Recent Movie The Power of Now by Eckhart Tolle The Alchemist by Paulo Coelho Start with Why by Simon Sinek CEO Robotaton Corp. - robotaton.com With Robotaton a business owner or management team doesn t have to have the knowledge time or money to plan build and roll out process automation implementation on their own we do it for them while (at times) acquiring or taking an equity stake in the company in the process. Proudest Accomplishment We have been building and implementing a total automation solution for a company in Canada. We were able to eliminate 20 000 hours of slow inefficient and error-prone human labor saving the company 400 000 in annual payroll. Greatest Challenges The biggest challenge is finding the right target companies ready to give process automation a prominent place in the business. What motivates me Automation maximizes the operational simplicity and value of any company. I want to help as many entrepreneurs and companies as possible identify build and implement our technology and methodology. What do you love about what you do I love to look at an income statement and cross off all the expenses that we will eliminate with a new company-wide automation solution and then do a quick cash flow valuation of the new automated company. Most memorable EO Experience Fenway Park at NERVE Boston What distinguishes your company If we aren t looking at a solution that has a massive operational impact across the entire company then it s not the right project for us. Recent Book Kiss Me Like A Stranger My Search for Love and Art by Gene Wilder 64 JANUARY 2017 www.sfbwmag.com www.sfbwmag.com JANUARY 2017 65 ww COMMERCIAL REAL ESTATE Trump s Trade Stance Raises Concerns BY DARCIE LUNSFORD It s often said there are five stages of grief denial anger bargaining depression and eventually acceptance. If international trade had been personified as the beloved and long-standing economic partner to tourism then South Floridians still would be in the denial stage over incoming President Donald Trump s stance on possibly pulling the plug on the North American Free Trade Agreement and abandoning or renegotiating other crucial trade pacts. International trade is the aorta of commerce for South Florida and the entire state pumping 147.4 billion in products in and out of Florida in 2015 according to an Enterprise Florida report. The sector supports 2.5 million jobs statewide. Boiled down one in every four jobs is tied to trade. Florida imports about as much as it exports. Commercial real estate developers have bet big that the state and South Florida in particular are well-positioned to gobble up greater global market share. Since the Great Recession ended nearly 9 million square feet of new state-of-the-art warehouse and distribution hubs have either been built or are underway in Miami-Dade Broward and Palm Beach counties. I think everybody is in a wait-and-see mode says Manny Mencia senior vice president of international trade and business development for Enterprise Florida. New presidential administrations tend to reassess things and there s a lot at stake even if Trump makes good on withdrawing only from NAFTA a trilateral trade pact between the United States Canada and Mexico which he quipped was the worst trade deal in history. Thanks to NAFTA Canada and Mexico are among the top countries doing business with Florida. These are very large and integrated economies Mencia says. Together they form one the largest trading blocs in the world. Canada in fact is the No. 1 export market for goods originating in Florida. Mexico is third. And that doesn t take into account all the professional services-- such as legal accounting engineering and technology--that flows freely from Florida into Mexico and Canada as a result of NAFTA Mencia says. Many don t regard Florida as a manufacturing juggernaut but the state ranked seventh in the nation for manufactured exports shipping out 47.9 billion in 2015 according to Enterprise Florida. Computer and electronic components transportation equipment chemicals machinery and food products are the top exported manufactured goods. Florida manufacturing for export doubled between 2000 and 2015. That outpaced national growth of 86 percent. Then there s China also squarely in Trump s trade-deal crosshairs which is the state s second-largest trade partner with 9.3 billion in exports and imports in 2015. Brazil is first with 18.6 billion in two-way trade. Despite Trump s campaign promises South Florida s commercial real estate sector has remained unflappable. For South Florida the activity levels remain strong says Mike Silver a veteran Miami-based industrial broker at CBRE. School is still out on what the ramifications for South Florida s industrial market will be. If Trump withdraws the nation from NAFTA the consequences would be severe and reach far beyond South Florida says Tony Villamil a trade economist and cofounder of Coral Gables-based Washington Economics Group. Villamail was the undersecretary of commerce for economic affairs under President George H.W. Bush and was part of the policy team that worked on NAFTA. He reminds people that NAFTA was a bipartisan initiative that started under President Ronald Reagan and was signed by President Bill Clinton in 1994. NAFTA is misunderstood. We wanted a strategic agreement that would unite North America Villamil says. He acknowledges some pockets of the country have lost jobs but others prospered. The agreement has been an net economic boon for the United States he says. Withdrawing from it--or even trying to seriously revise its basic free-trade underpinnings--could be thorny. Just consider the auto sector whose supply chain to assemble cars built in Detroit is now inextricably interwoven across North America. You start to unravel that and you will create a recession in North America Villamil says. You ll also raise costs for goods which will pluck money out of consumers pockets he says. But there might be room for improvement. Protection for intellectual property and technology are areas that he thinks could be enhanced. We need open markets Villamil says. If any place would be impacted it is South Florida because we re a global market. Freelance writer Darcie Lunsford is a former real estate editor of the South Florida Business Journal. She is the senior VP for leasing at Butters Group and is avoiding a conflict of interest in her column by not covering her own deals. 66 JANUARY 2017 www.sfbwmag.com BOOK TODAY Premium Suite Host a group or corporate event in one of six premium suites. With air conditioning cable television and a private server watching Spring Training baseball has never been this good. A suite rental includes game tickets for 15 guests and the opportunity to enjoy a game from a private indoor-outdoor seating area. Party Deck Covered decks located on the suite level can be found along the 1st base and 3rd base lines. Amenities include All-You-Can-Eat menu packages Full service bar Exclusive use of the area for the game Starting at Up to fifteen additional tickets can be purchased for your suite. Starting at 900 PER GAME 40 PER PERSON minimum 40 people . 844.676.2017 BallparkPalmBeaches.com www.sfbwmag.com JANUARY 2017 PBPalmBeaches 67 NONPROFIT GOVERNANCE Getting There How to Target and Join a Nonprofit Board BY GERRY CZARNECKI You ve considered all of the challenges to being on a board and you ve decided you want to get involved so now it is time to find out how to get on a board. Most nonprofits are anxious to find directors so you might find the process quite simple--or it could be a real challenge depending on what you are willing to do to get there. Again here are some things that can set the wheels in motion to become a board member. Many of these might sound too over-the-top or they might seem simple. It depends upon who you are and whay you can actually commit to. 1. First determine the nonprofits that have causes for which you have a passion. My advice Never join a nonprofit board whose mission and vision fall short of where your interests and passion rest. 2. The easiest--and for many the least possible--way to get on a board is to make an unrestricted donation equal to the annual operating budget of the entity. With that gift they will have a well-polished seat for you. I know you think I m being cynical and sarcastic but it s quite realistic to expect that a major donor could be a director almost entirely because of the magnitude of the contribution. 3. A more realistic series of actions might start with volunteering for the organization. 4. Another would be to start making an annual membership contribution and then buying into and attending the events being used to raise funds. 5. Network at events where the nonprofit is represented so you can meet members of the board and the leadership team. Networking works in gaining access to boards no matter what type. 6. Use the power of your day job to create a contribution pattern from your company or organization. The reason CEOs often sit on nonprofit boards is in part a function of their ability to direct contributions or related marketing dollars to the nonprofits for which they have a commitment. If you have a senior leadership position you will be a highly desirable candidate. Reach out to the nonprofit s executive director or president and ask how you might help the cause. 8. Network with and connect to the board chair and or the leader of the governance committee. And if you know members of the board reach out to them and indicate your interest. If you do all of these I predict you ll quickly become a candidate for a nonprofit board seat. Once you start this process you are probably going to get on the prospect list for many boards so be sure to refer back to the first point and commit only to those for which you have both time and passion. If you actually can take these steps you ll be a board member--and then the work will begin at being an effective governance member. Gerry Czarnecki is founder and chairman of the nonprofit National Leadership Institute (nationalleadershipinstitute.org) which helps boards of nonprofit organizations become strategic assets to the leadership team. His extensive background as a C-suite executive and CEO is coupled with current board leadership of corporate and nonprofit organizations. He is also chairman and CEO of the Deltennium Group. Contact him at 561.293.3726 or gmc deltennium.com. 7. 68 JANUARY 2017 www.sfbwmag.com 29 YEARS ON COLLINS AVENUE THE SHOW TO SEE. FEBRUARY 16 - 20 2O17 COLLINS AVENUE New Yachts Brokerage Marine Accessories VIP Packages Exclusive Superyacht Miami Location At Island Gardens Deep Harbour For tickets and more information visit yachtsmiamibeach.com YACHTS MIAMI BEACH www.sfbwmag.com JANUARY 2017 69 TECH HUB South Florida Pioneers Discuss the Next Big Thing BY CHRIS FLECK A recent South Florida Technology Alliance event set the stage for a number of leading experts in the emerging field of IoT the Internet of Things. It turns out that there are a number of local companies leading the industry in the space as well as some exciting startups. According to analyst firm BI Intelligence more than 6 trillion will be spent on IoT products and services during the next five years with 34 billion devices connected to the internet by 2020. This broad market covers everything from home automation to retail to autonomous cars. The local companies are focused mostly on business-to-business solutions such as retail and employee productivity. These panelists shared their stories and vision for IoT with an audience looking to learn. Jimmy Buchheim CEO of Bluvision talked about getting started in IoT with a crowd-funding campaign that raised more than 900 000. That was the second-highest funding level achieved at the time. The product StickNFind is a consumer device for tracking and finding lost items. Since then Bluvision has focused on commercial applications such as asset tracking and employee automation workflows. With customers including Apple and Google Bluvision is now one of the largest suppliers of beacons with almost 2 million units shipped. Michael Beedles president of SATO Global Solutions described how his organization is part of a 50 billion conglomerate that goes back to the first barcode systems. When SATO wanted to set up its North American headquarters for the IoT division it chose Fort Lauderdale over California s Silicon Valley Austin Texas and Charlotte North Carolina. It has been happy with the results. Beedles talked about how SATO provided a solution for a global retailer that was rolling out a new expensive garment. Because of the sensor tags on the garments the client was able to determine that the initial shipment Mike Beedles was not selling in real time after being tried on. The problem turned out to be a manufacturing issue that was able to be corrected before tens of millions of dollars was spent on inventory. Anthony Ricco the CEO of 4Sense a local startup that provides human location analytics based on a unique hardware sensor and software platform. This sensor passively tracks people without required devices. Ricco described scenarios such as tracking customers to know how long they spent and where and what they ultimately bought. 4Sense also includes retired Citrix CEO Mark Templeton as a founder and executive chairman. Rodolfo Saccoman CEO of AdMobilize shared his story going back to his experience of getting on the TV show Shark Tank in a prior startup. His current company has more than 2 500 customers using vision systems and analytics to improve marketing results with digital signage. Recently it has developed a new IoT device called the Matrix that includes 15 sensors along with sample apps and a development platform that enables unlimited new IoT solutions. Citrix Systems the host of the event demonstrated its IoT products including the Healthcare Hub which combines electronic medical records with automated collection of vital signs from wearables and Bluetooth technology. Citrix also is developing locally the Workspace IoT Hub which combines app delivery with IoT gateway functionality and automated workflows to help companies create their own workplace of the future. South Florida has played a key role in tech history including the birthplace of the IBM PC the first Smartphone the first Motorola pager cloud pioneer Terremark and multiple other innovations. It s good to see the pipeline of local innovators contributing to the next big thing in technology. Chris Fleck is on the board of the South Florida Technology Alliance and vice president of emerging solutions for Citrix Systems (Nasdaq CTXS) a Fort Lauderdale company that provides secure delivery of applications and data. 70 JANUARY 2017 www.sfbwmag.com YOUR BUSINESS CELEBRATE Have your logo molde d into a chocolate bar for a unique gift that your customers will never forget. Celebrate with Hoffman s Choco lates MAKE A SWEET IMPRESSION For a complete list of stores visit Hoffmans.com locations HOFFMANS.COM www.sfbwmag.com JANUARY 2017 71 Amerikooler walk-in coolers and freezers are that cold. Our industry-leading features and long-lasting efficiency make our coolers and freezers as cold as this list for years. When your rapidly growing business is heating up let Amerikooler keep you kool. amerikooler.com 72 JANUARY 2017 www.sfbwmag.com C O M PA N Y P R O F I L E ALG Awarded Florida s Best Law Firm of the Year After more than a decade of service to clients ALG was recently recognized as Florida s Best Law Firm of the Year along with its managing partner Ben Solomon who was awarded Florida s Best Attorney of the Year. ALG began with just three attorneys but flourished into employing over 125 attorneys and staff and representing hundreds of corporate clients in tens of thousands of legal matters. The firm continues to add seasoned attorneys to its legal team including appellate lawyer Douglas Stein who recently joined ALG as a senior partner. ALG s main office is in the Brickell area of downtown Miami and it also has an office in downtown Fort Lauderdale while maintaining a state-wide practice. ALG represents hundreds of condominiums and HOAs as general counsel with a specific focus on the collection of assessments litigation and insurance defense including some of the most prestigious properties in Miami such as One Miami Bellini Bal Harbor Continuum South Bay Point and Harborview at Fisher Island to name a few. The firm also has a niche of representing some of the largest master communities in the market such as Keys Gate Oasis and Isles at Bayshore with thousands of homes each as well as representing recreational clubs. Additionally ALG serves as corporate counsel to the Miami Association of Realtors the largest realtor association in the country with over 40 000 members and previously served as general counsel to the Builders Association of South Florida. Among other accomplishments ALG has recovered over 125M for clients helped shape new laws and innovate new legal strategies. ALG has been recognized dozens of times as an industry leader by local and national media sources including Money Magazine Forbes Bloomberg CNN CNBC and the Wall Street Journal. ALG has affiliated firms including Title Company of Florida which specializes in residential and commercial transactions and Solomon Furshman & Cooperman LLP a boutique real estate law firm which represents real estate developers commercial property owners hotels banks and REITS. ALG continues to be involved with helping the community and regularly participates by donating time money and assistance to not-for profit organizations government programs and performing pro-bono services for those in need. Among other philanthropic organizations the firm is involved with Big Brothers Big Sisters of Greater Miami. For more information on ALG please visit the firm s website at www.ALG-FIRM.com. www.sfbwmag.com NOVEMBER 2017 www.sfbwmag.com JANUARY 73 cordially invites you to join us as we celebrate the 2017 Excellence in Human Resource Awards E X C presented by I N ELLENCE HUMAN RESOURCE AWARDS 2016 Delivering Talent. Impacting Results. Thursday March 9 7 00 PM The evening will feature a cocktail reception followed by an awards ceremony NSU Art Museum 1 ast Las Olas Blvd. Fort Lauderdale FL 33301 complimentary valet parking 150 per ticket To purchase tickets or for more information please visit http sfbwmag.com signature-events hr-awards Gold Sponsor Silver Sponsors 74 JANUARY 2017 www.sfbwmag.com LOCATION LOCATION LOCATION Prime Fort Lauderdale Office Space for Lease Commercial Tower at Executive Airport Office Space For Lease - 2101 W. Commercial Blvd. 5 Story Class A 94 350 SF Office Building with marble entry and lake views. Located 1.2 miles west of I-95 with easy access to Florida s Turnpike. Close to hotels retail and restaurants. 11 miles from Fort Lauderdale - Hollywood International Airport and adjacent to the Ft. Lauderdale Executive Airport. Ammenities include covered surface parking 24-hour building access security cameras dry cleaning service automotive detailing. 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For leasing information 954.540.6490 or info hsdholdings.com www.sfbwmag.com JANUARY 2017 75 PEOPLE PASSION AND PROFITS Resolve to Hold the Good in 2017 BY STEPHEN GARBER The start of a new year traditionally is an overindulged time for planning goals and resolutions. Gyms will be packed. The snowbirds will fly down in ever-increasing droves. Our lives will get a bit more stressful with more people clogging the roads and the shops. It s not easy to hold the good sometimes. We ve just finished a year that has touched on revealed and perhaps stoked the fires of change. Some people love those changes--Make America Great Again--and some people are concerned about them. The same was true eight years ago--the Audacity of Hope. Promises promises. Politics aside we always go through change. It happens faster and faster. We age our kids grow up technology helps us do things that we once only dreamed about. We can see and treat our bodies medically as never before. We can simultaneously video chat with multiple people around the world for free. Our phones can literally control our homes and cars--from anywhere. Who carries a camera Driverless cars are coming. And we see the things that are happening in our world in real time for better and worse. We have choices for our resolutions and actions. Most of us focus on what we are going to do Eat more healthily exercise regularly call or visit family more frequently save more be kinder etc. But here s the magic What we do is the tip of the iceberg. Our minds are so much more than the conscious thoughts and connections we make--the thoughts of which we are aware. Science tells us our unconscious mind is seven to 10 times larger than our conscious mind. If you are having similar results to the past--making resolutions that are similar from years gone by--then you are likely using only a small part of your mind. And so many of us focus on the negative consciously and unconsciously. Seventy percent of the unconscious mind doesn t really expect positive change because it hasn t worked in the past. At the first chance we seek and or recognize the negative evidence--whether it is there or not. I m 63. I have a lot of life left to live and grow. (Remember when that was old ) My resolution is that I will work every day to fill my mind with positive thoughts and memories. I will do some serious memory management to bring the positive thoughts images memories and the state of mind of success to my diet exercise relationships business finance--to my life. I will say thank you to everyone for what they bring to my life. My wife for giving me the best friend I ve ever known. My daughter for doing her best. My friends for who they are. For the beautiful home neighborhood region and state where I live. For the opportunity to work with wonderful people and to make a difference in lives families and businesses. I will hold the good when I want to do something transformative for my health body business or financial state. Or when I write an article speech or workshop materials. Or when I go into coach train or facilitate. Or clean the garage do the gardening cook and clean up the meal. I will remember the good times the times I ve been successful at those tasks--the joy it brings to me and those I m helping. The positives that I saw heard and felt--and I will let those thoughts and images guide my thoughts efforts and results. And I will have more to say thank you for. I ll hold the good. Here s to you holding the good in your life--and creating even more good to appreciate in 2017 and beyond. Steve Garber is director of Third Level Ltd. Contact him at 561.752.5505 or sgarber thirdlevel.com. 76 JANUARY 2017 www.sfbwmag.com Re ist g r n tio a ow N O en p Play Explore Register Now at JASouthFlorida.org Camp begins in June. Open to students ages 813. Leadership positions are also available. JA WORLD HUIZENGA CENTER AT BROWARD COLLEGE 1130 COCONUT CREEK BLVD COCONUT CREEK FL 33066 JASOUTHFLORIDA.ORG CAMP 9549797100 SUMMER CAMP L n ear Have Fun THE FAMILY OFFICE Protect Thy Elders BY JULIE NEITZEL With increasing frequency older Americans are becoming victims of financial crimes. It s estimated that one in five older Americans have been exploited financially. Most victims are 80 to 89 and generally live alone with women being the victim twice as often as men. Exploitation generally comes at the hands of caregivers friends and--the majority of the time--family members. An AARP study found that financial exploitation by family members involves larger sums of money than with strangers. A Merrill Lynch survey concluded that children were the perpetrators in nearly 71 percent of the cases. (Indeed there was a well-publicized case several years ago involving New York philanthropist-socialite Brooke Astor that resulted in the imprisonment of her son for mismanaging her financial affairs. He was accused of grand larceny fraud conspiracy and for leaving his mother in deplorable living conditions.) Sadly victims often don t talk about financial crimes because of shame denial and fear. The wealthy elderly are a ripe target for scam artists given that more than 18 trillion remain in the hands of those 65 or older. Also because this wealthy group likely will live longer than non-affluent contemporaries because of their access to medical care and resources their likelihood of being targeted increases-- especially if there s cognitive impairment which happens to more than half of those who reach age 85. The types of scams and financial exploits vary but the internet creates additional opportunities for victimization. Email phishing attempts are frequent a writer might impersonate a family member asking for money to resolve an emergency. Sometimes scams involve requests to transfer funds in order to settle a phony tax issue. The Internal Revenue Service has experienced a surge of incidences in which scammers threaten arrest legal measures and other scare tactics. Caregiver fraud centers on the abuse of trust and vulnerability leading to identity theft financial theft forgery embezzlement and property theft. Similarly unscrupulous financial advisers can subject elderly clients to inappropriate investments unreasonably high fees and or financial fraud. Personal and estate planning documentation is particularly important for the elderly. A durable power of attorney allows for a designated individual to step in to handle all non-medical affairs (such as paying bills managing accounts and running businesses) of someone who becomes incapacitated or incompetent. The designation of a health care surrogate allows others to make routine and other medical decisions when the principal cannot voice his or her own decisions. A living will contains one s instructions with regard to decision-making if he or she becomes incapacitated and life-prolonging procedures are being considered. Without such documents a person could become subject to guardianship in which a court appoints a third party to make important decisions--which is not preferable as the family could lose control of an elder loved one s affairs. Those vulnerable can address this potential threat by having ongoing conversations with trusted family members and other advisers. Transparency is an important element along with educating family members on the frequency and types of financial scams targeting the elderly. Knowing who manages money how bills are paid who has access to accounts and passwords and who has designated roles in estate planning documents are important discussion points within the communication process. Working with your trusted advisers is a critical component of planning for and protecting your loved ones futures as well as your own. Julie Neitzel is a partner and adviser with WE Family Offices in Miami and a board member of the Miami Finance Forum. Contact her at Julie.Neitzel wefamilyoffices.com or 305.825.2225. 78 JANUARY 2017 www.sfbwmag.com THE ULTIMATE FITNESS DESTINATION Designed to be the perfect environment to maximize the effectiveness of our trainers and clients health fitness and emotional well-being Trainerspace has revolutionized the fitness experience in ways you ve never thought possible. (561) 571-5392 info trainerspace.com 990 South Rogers Circle Ste 7 Boca Raton Fl 33487 T RA IN E R SPACE .COM 80 JANUARY 2017 www.sfbwmag.com FREE museum admission 4 8 pm every first Thursday of the month STARRY NIGHTS PRESENTED BY January 5 February 2 March 2 2-for-1 specials on wine and craft beer in the Museum Caf and hands-on art projects for all ages. Starry Nights activities include Micro Mini Muse and Mini Muse lectures films tours Art of Wine & Food and more. FREE FIRST THURSDAYS Exhibitions On View Regeneration Series Anselm Kiefer from the Hall Collection on view through August 13 2017 Francesco Clemente Dormiveglia on view through April 23 2017 Samson Kambalu Nyau Cinema on view through April 23 2017 Belief Doubt Selections from the Francie Bishop Good and David Horvitz Collection on view through January 22 2016 William J. Glackens A Modernist in the Making on view through October 22 2018 nsuartmuseum 954-525-5500 nsuartmuseum.org One East Las Olas Boulevard Fort Lauderdale Educational programming and initiatives at NSU Art Museum Fort Lauderdale are supported by major funding from the David and Francie Horvitz Family Foundation The Joseph & Winifred Amaturo Education Foundation Inc. Lillian S. Wells Foundation Inc. Jerry Taylor & Nancy Bryant Foundation Hudson Family Foundation The Related Group Beaux Arts Community Foundation of Broward Wells Fargo the Wege Foundation Charles F. and Esther M. Frye Foundation PNC Foundation MAI Foundation and Friends of NSU Art Museum Fort Lauderdale. Exhibitions and programs at NSU Art Museum Fort Lauderdale are made possible in part by a challenge grant from the David and Francie Horvitz Family Foundation. Funding is also provided by The John S. and James L. Knight Foundation Nova Southeastern University Hudson Family Foundation Broward County Board of County Commissioners as recommended by the Broward Cultural Council and Greater Fort Lauderdale Convention & Visitors Bureau the State of Florida Department of State Division of Cultural Affairs and the Florida Council on Arts and Culture. NSU Art Museum is accredited by the American Alliance of Museums. www.sfbwmag.com JANUARY 2017 81 HISTORY VIEWPOINT The La Gorce Country Club clubhouse in 1928 (Matlack Collection HistoryMiami Archives) Miami s Original Club Scene When you think about clubs in the Miami area images of South Beach s glamorous nightlife might come to mind. But there s another type of club steeped in tradition that has the honor of being Miami s first club scene --the country club. Miami s humble beginnings as mangrove country is a far cry from its current skyline. Originally thought of as prime farming land John S. Collins soon realized the little barrier island known as Miami Beach would be better served as a winter getaway for the elites to the north. Collins the namesake of Collins Avenue thus became a land developer with help from his son and son-in-law. As they dredged up along the coast other developers took notice and Carl G. Fisher joined the force. Within a decade the millionaires were jazz-stepping down Florida s southeast coast. And as big spenders migrated south for the winter a new market opened up for exclusive first-class entertainment. Developer George Merrick saw the opportunity and seized upon it. He met with the mogul behind the elegant Biltmore Hotel with the idea of adding more entertainment value in hopes of solidifying Miami as the center of sports and fashion. Biltmore Country Club opened in 1926. It boasted a championship golf course by renowned golf course architect Donald Ross polo fields tennis courts and a massive 150-by225-foot swimming pool. As more people came to Miami Beach to soak up the sun more country clubs sprouted up along the beach. Two million cubic yards of Biscayne Bay were dug up a three-year process that made way for the opening of La Gorce Country Club in 1927. La Gorce has been home to many well-known Miami residents such as Joe DiMaggio while famous golfers such as Sam Snead graced the greens. Thus started the great tradition of glamorous Miami winters. It did not stop there Bath Club Surf Club and Indian Creek Country Club started societies of their own. World War II turned many of these country clubs into training areas. The glitz glamour and allure was gone. The Biltmore Country Club was now a military hospital while other country clubs nearly died out. But a tradition so deeply rooted in the spirit of Miami was too strong to fan out so easily. The 1940s saw a resurgence in country clubs spawning renovations to current country clubs and new clubs such as Riviera Country Club. The clubs teamed with people champagne flowed and the city thrived. Miami continued to grow and developed into an international epicenter. Country club memberships burgeoned. The importance of country clubs in shaping Miami s identity as the playground of the rich cannot be missed. It s a tradition that is quintessential Miami. Information for this feature is courtesy of the HistoryMiami Archives & Research Center which is open to the public and contains more than 1.5 million images of southeast Florida the entire state and the Caribbean from 1883 to the present. For more information visit historymiami.org. 82 JANUARY 2017 www.sfbwmag.com H r n 1 -ih P n a t a mo y 3 L t e d n g B b l ga s alo v r u se aesp otdb u be ls b l f ai s i s r u p r s o z e y a js bec be fr wiev r t o d s n. dut l a lso a d ai y f e i s a e g T ega s alaei miae b rpa e beLD h ls b l r l n td y e lc a l E s l u b ls n aefl dmma l. ub a d r ul i y be luihigc m b l t .o g n EXTRAORDINARY. 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