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DECEMBER 2014 SFBWMAG.COM 7.95 Monroe and his Gang Here comes It s beginning to look a lot like B AY VI E W D E L R AY B E A CH S AW GRASS Test drive the all-new 2015 Cadillac ATS Coupe Relentlessly pursue the client s goal but never rest in the glory. Jordan Zimmerman The number one advertising agency in the world in driving client profitability. 954.644.4000 December 2014 3 PatrIOt NatIONaL Your trusted Workers Compensation and Managed Care Services Partner of Choice Patriot National Inc. is a leading provider of Workers Compensation and Managed Care Services. For more information on how we can help you with your Workers Compensation needs contact Nicole Brewer nbrewer 954.670.2946 401 E. Las Olas Blvd. Suite 1650 Ft. Lauderdale FL 33301 4 December 2014 Trust No issue too big no item too small. Our only real estate service is ensuring you total peace of mind. Solutions. NAI Miami offers discerning investors concierge level service to safeguard assets with a local perspective and attention to detail regardless of where you are. 1 305 938 4000 December 2014 5 TABLE OF CONTENTS Sunrise s new mixed-use urban oasis Metropica SPACES 12 Hamid Hashemi the magic behind the movies PROFILE 26 30 16 Internet of Things Monroe Gang makes his mark as a top technology recruiter. COVER STORY The dynamic duo of Paul Kaplan and Robert White STRATEGIES TECH HUB LAW 80 Skip Zimablist and the world s largest boat show CEO CONNECT 32 37 82 84 When to hire an outside general counsel The best and brightest C-level execs are honored APOGEE AWARDS SFBW AGENDA Buzz about our business partners 68 71 Jim Fried on cars crowdfunding real estate and youthful competition BEHIND THE MIC Strategies on joint tax filing ESTATE PLANNING INVESTMENT 86 88 Gallup s leader speaks at the Greater Fort Lauderdale Alliance BUSINESS SCENE Save on taxes by wrapping a hedge fund in an insurance product HOSPITALITY The return of the condo hotel 72 74 INSIDE THE INCUBATOR Meet Rokk3r Labs 90 94 Auberge on the beach RESIDENTIAL COMMERCIAL Office building buying boom Finding the right person for the job SALES 78 Traffic & the trolley car HISTORY 95 6 December 2014 Alberto Brioni Canali Donald Pliner Eton Gardeur George Roth Georgio Armani Gran Sasso Haupt Hiltl Pal Zileri Ravazzolo Robert Graham Samuelsohn Sand Torras Van Laack Zanella 561 620 0011 The Shops at Boca Center on Military Trail LETTER FROM THE PUBLISHER Hitting the peak Powering your bottom line Publisher Kevin Gale right solution. right service. At Any time. 1-800-385-3187 If you missed the Apogee Awards you missed one of the region s top networking events. SFBW attracted a who s who of C-level leaders to our Nov. 6 program at the Museum of Art in Fort Lauderdale. With this being the era of teamwork it s fitting that Apogee celebrates the whole range of people in the C-suite. You can read more about what s behind the Apogee Awards in my introductory letter in the awards section further back in the magazine. We also have some fun photos of the networking. While I m on the subject of awards we are actively seeking nominations for Up & Comers and Leaders in Law. SFBW will take the lead position in further developing these awards programs which were launched by our Lifestyle Media Group earlier this year. Both are great events with Up & Comers celebrating those who have achieved great success before the age of 40 and Leaders in Law recognizing the achievements of top attorneys in the region. I d love to enlist our readers in helping to drive a great slate of nominees. Is there someone under 40 who is a big star in your business or someone with whom you do business How about your lawyer does he or she do a stellar job You can go to and click on events at the top of the page to start the nomination process. We had a lot of fun with this month s cover of Monroe Gang and Atlantic Partners. The custom chopper in the picture was built by Orange County Choppers and has an estimated value of 150 000. We shot the Atlantic Partners crew at Excell Auto Group in Boca Raton as the chopper was being raffled for charity. Miami Beach and Brickell have been getting a lot of attention for condo developments but this issue features a couple of new projects on Fort Lauderdale s beach Ireland s Inn and the Conrad which are bringing back the condo hotel concept. We continue our focus on emerging companies and technology in the region. Check out our list of companies at Rokk3r Labs in Miami and Chris Fleck s report on the Internet of Things. I d like to welcome a couple of new additions to the SFBW team. Leslie Kraft Burke who was my managing editor for many years at the South Florida Business Journal is our new contributing editor. It s great to be reunited. Allison Albaijes who has an extensive background in publication advertising has joined us as our newest market director. As always I welcome your feedback. Please email me at kgale or call me at 954.377.9566. Kevin Gale 8 December 2014 Is Debt wrecking your employees productivity Let Consolidated Credit Guide Your Employees to Financial Wellness On-Site Workshops & Seminars Online Financial Tools Budget & Debt Counseling Free Financial Publications e For more information 1-800-294-1792 PUBLISHER AND EDITOR-IN-CHIEF ASSOCIATE PUBLISHER Kevin Gale kgale Sally Nicholas snicholas ASSOCIATE EDITOR Ivette Figueroa ifigueroa ASSOCIATE EDITOR Richard Shellene rshellene CONTRIBUTING EDITOR Leslie Kraft Burke Creative CREATIVE DIRECTOR ART DIRECTORS Melanie Smit Alexander Hernandez Frank Papandrea Alisha Riddle Writers CONTRIBUTING WRITERS Leslie Kraft Burke Chris Fleck Jim Fried Steve Garber Darcie Lunsford Greta Schultz Julie Shattock Photographers Downtown Photo Fort Lauderdale DreamFocus Photography Larry Wood Marketing MARKETING COORDINATOR Natalie Merin natalie jhorowitz llee CHRISTINE REDMOND credmond GAIL SCOTT gscott JILL HOROWITZ LISA LEE Market Directors aalbaijes JAMES CONSTANTINE jconstantine PETER EVANS pevans TANISHAL HARRIS tharris ALLISON ALBAIJES CHAIRMAN Gary Press gpress GENERAL MANAGER Danielle Tarrant dtarrant Editorial Advisory Board Marc Brotman Brotman Nusbaum Ibrahim Found and Partner Bob Birdsong OK Generators President Rick Case Rick Case Automotive Group Owner Abe Dababneh Smoke Inn Owner Monroe Gang Atlantic Partners CEO Gerald Greenspoon Greenspoon Marder Co-Managing Director Scot Hunter The Emerald Companies Managing Director Michael Keeby Brown & Brown of Florida Executive Vice President Jeremy Larkin NAI Miami President Alan Levan BBX Capital Chairman and CEO Gerry Litrento Bank United Senior Executive Vice President Steven Mariano SunCoast Holdings Chairman and CEO Angel Medina Gibraltar Private Bank & Trust President Neil Merin Merin Hunter Codman Chairman Ed Pozzuoli Tripp Scott President Chris Roberts Lexus of Kendall President Scott Scherr Ultimate Software President Ron Shuffield EWM President Terry Stiles Stiles Corp. Chairman and CEO Thomas te Riele TD Bank South Florida Market President Mark Trowbridge Coral Gables Chamber of Commerce President and CEO 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 2014 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. December 2014 11 SPACES Metropica will be a 1 billion project 12 December 2014 Metropica BY LESLIE KRAFT BURKE Sunrise to get a new high-rise downtown with residences offices commercial space next to Sawgrass Mills December 2014 13 SPACES The parking structures top will have rooftop recreation and green spaces. Sales of condos bottom started in November. Sunrise will soon have its version of a mixeduse urban oasis with the recent launch of the first phase of Metropica a 65-acre master-planned community located next to Sawgrass Mills Mall. Last May the city approved developers K Group Holdings and Trillist Companies plan for 1 250 high rise residential units starting in the mid 220 000s 485 000 square-feet of commercial space and 150 000 square-feet of office space. The 1 billion project will also have a central park. In November Metropica launched sales for YOO at Metropica a 28-story condominium featuring 253 one- two- and three-bedroom luxury residences along with 10 penthouse units. Residences will have appointments such as Italian cabinetry in kitchens and bathrooms decorative plumbing fixtures stainless steel appliances tile flooring throughout and smart-home technologies. Construction for the building will begin in March April of 2015 with completion expected 24 months later says Joseph Kavana of K Holdings which is the master plan developer of Metropica. Construction for the commercial and office components is expected to begin eight months after residential construction starts. Particular attention is being paid to the design of Metropica Kavana notes. YOO at Metropica is a design-collaboration of Philippe Starck s Yoo Design Studio and Oppenheim Architecture Design. 14 December 2014 SPACES Metropica will have a central park area and broad public walks Their concept for the building centers around offering residents a retreat from their daily lives in an intimate oasis. Interesting amenities for YOO include a pet spa a bike share and repair shop 24hour concierge fire pit resort-style pool tennis courts 24-hour fitness center with sauna and massage therapy rooms and indoor and outdoor kitchens and dining areas. Metropica has been 20 years in the works. We bought the land in 1994 and really did our homework on what the best use for it should be Kavana says. We realized there was a hole in the market Sunrise did not have a downtown area one place where people can live work enjoy restaurants and shopping. We will have all that plus a peaceful park just a few steps away. December 2014 15 Key members of the Atlantic Partners team include COO Ira Martin Jo-Anne Kunin who merged with Atlantic Partners President David Gang CEO Monroe Gang and Senior VP Jim Goldfarb December 2014 16 Monroe Gang s wild ride December 2014 17 COVER STORY The father and son duo of Monroe and David Gang have built Atlantic Partners into a thriving business Monroe Gang came to South Florida with the idea of buying a car wash bagel store or pizza parlor but ended up building an 18 million-a-year professional recruiting company. That life would take some twists isn t unusual for Gang whose life reads like a movie script. He talks about how he fled the police in a car as a wild teenager straightened up to join his father s cabinetry company was devastated by the death of his brother was wooed with a 1.5 million job offer built and sold a 20 million company in four years and reevaluated his life after having quadruple bypass surgery. The biggest story about Atlantic Partners though may be how Gang transformed an existing money-losing South Florida company that only had 600 000 in revenue. He assembled The kid your parents feared Gang s team speaks with respect about his charisma leadership honesty and work ethic but he wasn t always that way. Gang says he used to break windows and go into homes as a kid. I was mischievous but not malicious. I never hurt anybody. I got into my share of fist fights but I wasn t prison material although some of the parents might have thought I was he says. The turning point was after he took his dad s car when he was 16 got into a police chase and wrapped it around four other cars. His father was sued by four people. I hurt him and saw it and I stopped the activity. I stopped the lying and stealing he says. Gang entered his father s cabinetry and wood working business called Images and Panels. They had about 25 employees with a manufacturing plant in a rough area of Brooklyn s Bedford-Stuyvesant neighborhood and a showroom in the prestigious D&D building in Manhattan. Later the family opened a showroom in Miami Beach and Gang s brother was tagged to run it but died in a car crash on the 79th Street Causeway Gang says. The death devastated Gang s father and the surviving son was left to run the business. Gang says it turned into an unhappy situation running a business and working without his brother and father. I was mischievous but not malicious. I never hurt anybody. I got into my share of fist fights but I wasn t prison material although some of the parents might have thought I was. a team that includes a top technology recruiter in Atlanta and a top finance accounting recruiter in South Florida. His son who is president and a bevy of other seasoned executives have positioned the company for expansion throughout the eastern United States. Gang grew up in New York and is a top recruiter in the tech field nationally. What he has accomplished in South Florida symbolizes the surge of veteran talent flowing into the region as more people realize this is a great place to build a business save on taxes and enjoy a great lifestyle. 18 December 2014 November 2014 19 COVER STORY Monroe Gang with a custom-built Orange County Chopper valued at 150 000 Making a mark in tech Gang s entry into the tech field started when he met the owner of Computer Horizons Corp. Marty Pelcyger in 1983. He sold the cabinetry company and started in sales. Gang says he did well but things really took off when he was asked by Sperry Corp. to line up programmers in case a unionized programming shop went on strike which it did. Perhaps his background as a fearless teenager was useful after all when he had to help the team cross a picket line. I personally walked them in every day and walked them home everyday Gang says. There were incidents including someone setting the tail of a police horse on fire. The saga showed his dedication to clients and he got defense accounts with Grumman and Lockheed. One of his competitors Solomon Page made him an offer that was five to six times his salary he says. It sent me into a frenzy of loyalty issues he says. He labored over a move for over a year and then finally gave in to an offer of 1.5 million for three years plus stock options and commissions and Joined Solomon page in 1998 as sales manager. Gang was determined to prove his worth and business boomed as Y2K created a demand for tech workers. After the Sept. 11 attacks occurred he worked himself into a frenzy trying to do business and ended up having a quadruple bypass at 50. That recuperation period was grueling. I started to feel old he says. He now works out at the gym and practices yoga. He also has a mantra he repeats throughout the day that expresses appreciation for his health the success of his business and the clarity of his life. 20 December 2014 COVER STORY Gang and a friend talked about doing a small business that would provide a decent lifestyle and let them take off Fridays to play golf but they ended up building Resource Search Co. into a 20 million a year company. Meanwhile Gang s son David was in the Wall Street area when the Trade Center attacks occurred and was promoted to head trader at Rosenblatt Securities after the attacks. The years after the attacks were tough with the stock market floundering and layoffs hitting firms David says. He started realizing that a lot of traders were expendable in the 40s and 50s which was a fate he really wanted to avoid for his own future. He wanted to do something more entrepreneurial so David and his farther talked about buying a car wash bagel store or pizzeria in Florida. Instead David found out about Atlantic Partners in Boca Raton whose owner Jeff Levine was gearing up another venture called Salad Creations. Levine was looking for someone with New York smarts to run the office so David joined as president in mid-2004. He and his father ultimately bought out Levine s stake to become 50 50 owners and Monroe became chairman and CEO at the start of 2006. Two years after selling Resource Search Monroe s noncompete ran out so he re-established his practice in the northeast from his new Florida base. Atlantic now does business in 22 states. At one point Gang says he thought about selling the company but realized the potential buyers were no better than us smarter than us or more efficient. They just had more recruiters and clients. Expanding the team business He decided to take down the for sale sign and grow the business. He started to uncover more opportunities in Florida Atlanta and Texas in addition to his traditional Northeastern base. Executive VP and COO Ira Martin who has an extensive background in operations with Martin Touch Consulting joined Atlantic Partners in March and helped the company with operational efficiency and finding acquisitions. Martin has two deals in the works and has already landed one new member of the Atlantic Partners team Jo-Anne Kunin who started Kunin Associates of Fort Lauderdale in 1995. Kunin s CPA father was a pioneer in accounting and finance recruiting in South Florida starting in 1971. She specializes in high-level financial executives such as CFOs and does about 45 placements a year. Kunin said she saw an opportunity to partner with a company that had other verticals which will allow for more cross selling. Martin says Kunin s depth of contacts is superb and pound for pound Jo-Anne does more work than six people. Dorothy Parks the former CTO of Wyndham Worldwide and an IT executive at Cendant has joined Atlantic Partners as a division president and CTO based in Atlanta. Her practical experience is helpful to clients Parks says. I m able to work with top executives and talk the talk. I can identify with their struggles. She joined Atlantic Partners because Monroe Gang had been part of her vendor network for years and he offered help when she was relocating from the Northeast to Atlanta. I know this company. I know their reputation she says. It was a wonderful opportunity to not only become part of an organization like this but to establish new operations in Atlanta and the surrounding areas. Jim Goldfarb Atlantic Partners Director of Recruiting has a totally different perspective on Atlantic Partners since he s the sole survivor from its pre-Gang era. Goldfarb who has an IT background and was once a top biller at Spherion says Atlantic Partners lacked discipline and direction. Recruiters would go after any industry and job order that they could get their hands on. Gang allowed the firm to become more specialized in IT and become prime vendors with Fortune 100 and Fortune 500 clients in multiple locations. Martin helped put in better structure and practices which has led to an improved interviewing process and a higher hit ratio in placing candidates Goldfarb says. Atlantic Partners also now develops more talent itself rather than just hiring existing recruiters says Goldfarb. We wondered why we were failing failing failing. People come with bad habits. Goldfarb says he spend a lot of time with clients to delve more deeply into their hiring needs including anticipation of future needs. Martin says developing those types of long-term relationships make Atlantic Partners less reliant on just trying to fill the requisitions that big companies turn out for an array of recruiting companies to chase. We are in a people business says Goldfarb. We are not headhunters. You are matchmaking putting people together. Warren Wright Atlantic Partner s Senior VP for Quality Assurance & Process Improvement partnered with Gang on the sale of Resource Search Company and decided he wanted to partner in his next venture. Wright is heading up a program to hire military veterans with technology backgrounds and give them training that will lead directly to jobs with companies that work with Atlantic Partners. Their military backgrounds give them a head start in the security clearances needed by some of those clients. It s really such a positive program in every way Wright says. Gang attracts talent with his honesty integrity work ethic and a client service orientation Wright says. Monroe is a man s man. He s fun to be around. He has a great sense of humor and he has all of the properties speaking of a veteran that you would want to jump in the fox hole with him. Like Parks Wright has a practical business background in his case running a software company and delivering major projects for clients. One of his emphases with job candidates is to do a careful screening rather than throwing candidates at clients. We like to slow the process down so we can speed up the results. A lot of people in this business skip the quality control processes so they can meet the deadline. December 2014 21 22 December 2014 Marc Brotman Board Certified in Civil Trial Law Martindale Hubbell s Highest Rating Acknowledged as a SuperLawyer 32 years of trial experience YOU WOULDN T DO YOUR OWN HEART SURGERY YOU SHOULDN T HANDLE YOUR OWN INJURY CLAIM EITHER Call US at 561.417.5656 137 West Royal Palm Road Boca Raton FL 33432 (561) 417-5656 Marc ATTORNEYS We have paid millions of dollars to referring attorneys. Call me at (561) 417-5656. The hiring of an attorney is an important decision that should not be based solely upon advertising. Before you decide ask us to send you free written information about our qualifications and experience. December 2014 23 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. 800.205.7605 WALK WITH US TOWARD A SAFER TOMORROW. Learn more at WWW.LAURENSKIDS.ORG 24 December 2014 A Global Force in the Information Technology Arena We are a global company with 100 Years of combined experience placing IT professionals ALL while experiencing 28 quarters of consecutive growth. Our services of staff augmentation contract to hire direct hire and retained search will help you attain your business goals. Ask us about our Resource Concierge Program 6001 Broken Sound Pky. Suite 506 Boca Raton FL 33487 561-912-9363 main office info Meet Some of Our clients Blue Cross Blue Shield WebMD Guardian Citigroup TD Ameritrade Morgan Stanley Avon Weight Watchers PROFILE u the Movie Industry BY LESLIE KRAFT BURKE Hamid Hashemi passes the million customer mark with 11 iPics and plans a dozen more Hamid Hashemi says he got into the movie business because he didn t know any better and stayed because he is a sore loser. About 30 years later the founder president and CEO of iPic Entertainment appears to be the happy winner Hashemi has developed and successfully launched three companies involved in motion picture exhibition. iPic Entertainment currently has an average of 1.1 million customers in its 11 locations with 12 more under development. In South Florida he expects to open a North Miami theater in 2015 and is considering Coral Gables and other Miami locations. The iPic Theater in Mizner Park in Boca Raton is already open. All of the theaters here are east of I-95 to attract those with more free time rather than families whose time is more limited. Hashemi s success seems to stem from knowing that being in the movie business isn t really about the movies. He learned this the hard way he says when he bought his first theater in 1984 in Coral Springs. Then goliath General Cinema open one a mile away and Hashemi s business suffered. I m a sore loser so that s when I did my homework he says. Lesson One One movie theater can be very like another so the question is How do I get people to my theater instead of others You elevate the experience to something memorable a great night out Hashemi says. Make the environment exciting and luxurious with unique amenities like pillows and blankets great food drinks and service. Include the popcorn in the ticket price offer extremely comfortable seats and no sticky floors. His iPic Theaters brim with fun so much so that the average customer spends 4.5 hours there each visit. They choose from three culinary concepts driven by Wolfgang Puck-trained chef Sherry Yard Italian barbecue and seasonal American. A gastro pub concept is expected to launch in 2015. Mixologists make creative cocktails. Guests can enjoy food and drinks in restaurant and bar environments or be served right in their movie seats. Tickets cost 18 depending on seats. What they won t find are the things customers typically complain about in their average movie experience Hashemi says noisy children (because 26 December 2014 Hamid Hashemi December 2014 27 PROFILE ...elevate the experience to something memorable a great night out. Make the environment exciting and luxurious with unique amenities. the demographic is not family-driven) over-priced popcorn (because it s free) sticky floors and seats (because they are clean) and monotonous commercials (because iPic shows variety show-like entertainment before its movies). He is hoping to attract many who have been turned off by that experience to his theaters because they promise luxury lure those who typically watch movies at home because they can make a night or afternoon of it and increase the frequency of movie-going among his clientele. This is a seven night a week business and this is how you fill your theaters seven nights a week he says. In addition to attracting new customers with what we offer we have a lot of repeat customers. Certainly Hashemi knows movie customers. Innovation with Muvico He founded Muvico Theater in 1984 growing the company in less than 10 years to over 100 screens in South Florida before selling to Regal Cinema. From 1995 to 2005 under the same Muvico Theater name he began building a new generation of megaplexes with 18 to 24 screens. During this period he built some of the nation s most exciting and highest attended theaters such as the Egypt-themed Muvico Paradise 24 in Davie the Egyptian Theater in Baltimore and Boca Palace 20 in Boca Raton. Under Hashemi s leadership Muvico broke quite a bit of industry ground. It was the first movie exhibition company to offer amenities such as childcare centers assigned seating valet service and gourmet concessions. Muvico Palace was the first theater in the country to offer a premier movie experience and dining option under one roof and was recognized throughout the industry for its innovation. In 2006 Hashemi says he founded iPic Entertainment to pursue his vision of creating social destinations anchored by theaters and making the luxury movie-going experience available and affordable to the general population. iPic Theaters has 11 sites in California Illinois Texas Washington Wisconsin Arizona and Florida. New York New Jersey Texas Maryland and Pennsylvania are next. We are considered a desirable anchor tenant because we bring a higher-spend customer to all of our locations he says. It is a good time for the expansion from a real estate perspective. Even during the recession that customer was spending on movies. They may forego vacations but a night out at the movies is still the least expensive form of entertainment. We really didn t have problems then Hashemi says. Over the years I have learned what people like in their idea of a great night. They know they can count on it at iPic which is why they keep coming back. Tanzy Liquid Nitrogen Mixology from iPic Master Mixologist Adam Seger 28 December November 2014 South Florida Commercial Offerings 26399 S DIXIE HWY MIAMI AIRPORT AREA MIAMI BEACH AIRPORT AREA BRICKELL 3.26 ACRE DEVELOPMENT SITE Located on South Dixie Highway this 3.26 acre site of undeveloped land is located in the Naranja Charrette and has been approved for the development of 195 mixed use units multi-family residences retail and or office space. Offered At 1 875 000 EXECUTIVE SUITES AT FLEXIBLE RATES 5-star executive suites in Dadeland Miami Beach and now Brickell Flexible plans available that allow you to choose from short or long term leases. Rent by the hour day week month or year. Pay only for the space and services you need. Call For Pricing AUDREY ROSS 305.960.2575 CARLOS OLIVARES 305.894.6637 1647 HOLLYWOOD BLVD HOLLYWOOD 2962 TRIVIUM CIRCLE DANIA BEACH TWO-STORY HOLLYWOOD MEDICAL OFFICE BUILDING Medical suite consists of 6 exam consult rooms reception area w waiting room laundry rm & 2 baths. 2nd Level (two) high end built out 1 1 apts. Property totally updated. Improvements incl. impact windows & doors just next to Young Cr. Offered At 2 249 000 EXECUTIVE SUITES FOR SALE IN A PRIME LOCATION Office park conveniently located of I-95 and State Road 84 (Marina Mile). 603 sq. ft. to 4 000 - sq. ft office suites available. Common conference room first and second floor lobbies and free parking. Easy access to airport and seaport. Starting From 153 765 SCOTT PATTERSON 954.661.8871 PETER CUTLER 305.934.6257 CHRISTOPHER ZOLLER 305.321.3221 CANDY WYNN 305.5828434 4615 PONCE DE LEON BL CORAL GABLES 10271 SW 72 STREET D-104 MIAMI DADELAND GABLES FREE STANDING BUILDING Free standing office building with excellent visibility on Ponce de Leon Boulevard near the new Epicure. Easy access to downtown Coral Gables Merrick Park Coconut Grove or Downtown Miami. Offered At 900 000 AUDREY ROSS 305.960.2575 FOR SALE IMMEDIATE OCCUPANCY Turn-key office space with 1 837 sf and comes fully furnished. 2 large executive suites workstation area and conference room. Ample parking. Centrally located to hospitals and expressways. Offered At 390 000 CARLOS OLIVARES 305.894.6637 LINDSEY BROWN 305.494.3398 OFFICE SUITES AT TOWN CENTER ONE 5-star executive suites at Town Center One in Dadeland with flexible rates. Short or long term leases. Rent by the hour day week month or year. Pay only for the space and services that you need. Call For Pricing CARLOS OLIVARES 305.894.6637 Find More Commercial Listings At listings commercial 2014 29 December STRATEGIES KW s Regan Marock Sandy Bennett Robert White Katalina Cruz Paul Kaplan Roxana Dorigo Trycia Arencibia Big projects big evolution KW uses five-star resorts as a model for its services and expands into commercial property management BY KEVIN GALE Paul Kaplan and Robert White started out as a two-man operation but their KW Property Management has hit 800 employees and 30 million in revenues in its 10th year. After all somebody had to take care of managing all the big condos that have popped up. There are only three or four companies in the metro area that can handle sophisticated towers says White. There is built-in growth that we are inevitably going to get. We look at them as if they are a five-star hotel. They ve utilized training from Ritz Carlton on hospitality and Forbes on executive management. KW Property started in Miami but has gone well beyond South Florida by hitting all of the state s top metros and entering the New York market. It manages high-rises garden-style developments rentals commercial properties homeowner associations and REO properties for banks. Friends then partners Kaplan White and their wives went to football games together when the duo was working for the accounting firm now known as Berkowitz Pollack Brant. Kaplan was kicking the tires of a family business and asked White to take a look at it. We started talking about it and one thing led to another. We always worked well together says White. Raising money for an acquisition was difficult but they realized there was an opportunity to start their own property management company. Lennar and Shoma were among the first major clients and the firm rapidly grew to 30 properties over two years and had about 85 employees. Current clients include Crescent Heights Terra Group Lennar Shoma Toll Brothers PMG and Rilea Group. In August White and Kaplan formed Rivergate KW Management to provide non-association multi-family and 30 December 2014 co late g ift o f c ho G iv e th e Robert White and Paul Kaplan brought financial savviness to KW Beautiful gift baskets Decorative platters of assorted chocolates commercial property management. The multi-family division includes market rate and affordable housing properties and the commercial division includes office retail and industrial properties. KW has a headquarters near the Palmetto Expressway and NW 36th Street as well as offices in New York the Bahamas Orlando Tampa Naples and Fort Lauderdale. While many companies in the field come in with the perspective of maintaining properties they initially found a niche emphasizing their financial savvy as CPAs and the quality of back office operations. They then grew a company culture that emphasized training and concierge type services for customers such as high-rise front desks and clubhouses at single-family home developments. Our strategy has kind of shifted. In the beginning we helped developers with due diligence and placing debt for acquisitions. When the market went down we did a lot of receiver work White says. Their financial background also helped in dealing with all the issues faced by homeowner associations and condominiums during the recession. As the market rebounded they did more on the front end such as due diligence budgeting regulatory filings and helping developers plan new projects. To help manage the business they split up responsibilities in areas such as sales technology and hospitality. Geographically Kaplan oversees the Bahamas Miami-Dade and Broward counties while White handles Orlando Jacksonville and Tampa. Kaplan is an avid fisherman who has been going to Bimini for 35 years. That turned into an opportunity to manage the condo operations at Bimini Bay Resorts where Genting Group runs the resort and casino. Kaplan says entering the New York market was the result of meeting with a client spending three days in Manhattan and landing an 80-story tower across from Wall Street. I said to myself if you got just 1 percent of the market share you would have a tremendous company he recalls. KW now has about 14 towers in Manhattan Brooklyn and the Bronx. While they split many duties they always make major decisions together and try to show respect when one of them has a strong stance. We know how important it is to the person Kaplan says. It s like a marriage. White chocolate Oreos with your logo Custo mized gift boxes 920 E. Las Olas Blvd Ft Lauderdale 954-368-4320 COLLECT SMARTER. Ditch the blanket approach. Each of your clients is different. KW Property Management and Consulting Managing Directors Robert White and Paul Kaplan Headquarters 8200 NW 33rd St. Suite 300 Miami 305.476.9188 Customize your collection approach to each client and watch recovery rates soar. With our automated system you will save money without losing your hard-earned client relationships. For an in-depth nts receivable analysis accou sick. please contact Scott Kra scott.krasick k COLLECT SMARTER. (305) 582-8258 Find more info at December 2014 Collect Smater 1 4 page Scott Krasick.indd 1 31 7 28 14 6 54 AM CEO CONNECT Skip Zimbalist III talks about his famous family and the world s largest boat show PHOTOS BY DOWNTOWN PHOTO FORT LAUDERDALE Biggest in boating SFBW held a CEO Connect with Efrem Skip Zimbalist III Chairman and CEO of Active Interest Media and Show Management which produces the Fort Lauderdale International Boat Show. The marine industry is a top industry in the Fort Lauderdale area rivaling tourism by generating nearly 100 000 jobs and more than 10 billion in total economic impact to the area. The event was held at Ferretti Group America s Fort Lauderdale showroom just before the Fort Lauderdale International Boat which celebrated its 55th year. Since 1976 the show has been managed and produced by Show Management which became a subsidiary of Active Interest Media in 2006. Zimbalist was interviewed by SFBW Publisher and Editor-inChief Kevin Gale. The following transcript has been edited for clarity and brevity. fought in the infantry and got a Purple Heart. He went on to do 77 Sunset Strip and then the FBI. People say it must have been wild and crazy growing up in Hollywood and parts of it were you know Dean Martin lived over here and Frank Sinatra s widow over here and Clark Gable lived there. But my dad s idea of a really fun weekend was to fix the gate or to paint the bar or something like that. It rubbed off on all of his children who are I think are kind of the same. On my mother s side my grandfather was a career navy officer hence the name Skip he called me and ran convoy protection during World War I and ran the Brooklyn Navy yard during World War II and then ended up retiring as an admiral. Tell us about AIM and how it relates to Show Management. I spent a long time at a publishing company called You have quite a family. Times Mirror which then Tell us a little bit about became part of Tribune Co. them. Times Mirror included the My grandfather Efrem Los Angeles Times the Zimbalist was among the Baltimore Sun Newsday top two or three violinists in New York television in the world from about stations cable networks 1917 until about 1940. He the Golf Channel the was born in Russia and Outdoor Life channel started playing violin at the Speedvision and textbook age of three. He was the publishing and aviation first violin in the orchestra Skip Zimbalist and James Henderson of Feretti Group maps. in Rostov at age seven and They also had a won the competition as the best violinist in his illustrious school in St. Petersburg when magazine group and I came to do strategic planning mergers he was 17. He went to Berlin gave a recital and after that was and acquisitions and eventually was asked to run the magazine group which includes Yachting magazine Salt Water booked around the world for the next 30 or 40 years. He married my grandmother Alma Gluck who was the real Sportsman Popular Science Field and Stream and Outdoor rock star in the family. She was an opera singer and known for Life. I grew to love the special interest magazine business. I also singing in the Met Bolshoi and all over the world. She s the saw the power of when events and print media work together. I came down to Fort Lauderdale and it blew my mind first human being to sell a million copies of any one record because in most sports the shows are much smaller than the Carry me back to Old Virginny. My father Efrem Zimbalist Jr. was an actor his parents magazines and that s not true in the marine world or in the wanted him to be an engineer because they didn t think that aviation world. And I said Wow you know if I ever do my acting was a very respectable profession. After he flunked out own thing this is something that would be fantastic. of Yale for the second time he went down in New York and worked as a page in NBC and then went into World War II and Are there really a lot of boats sold during the show 32 December 2014 Left SFBW CEO and Chairman Gary Press with John P. Bauer Bottom James Henderson Shannon McCoy and Justin Blue and how does that aspect work If you go back to the 70s and 80s the boats were actually sold at the show. If you fast forward to today you have to look especially with the larger boats forward three to sometimes six months to really calculate it. There are a number of local manufacturers by that I mean in the Southeast who will have done 30 percent of their business at the Fort Lauderdale boat show. You ll have lots of companies that will do a 100 million worth of business at the Fort Lauderdale boat show. So how s the show grown to be the largest in the world It started off with 13 boats and it s grown to over a thousand boats counting all of the ones in the convention center on land it s probably 1 200 or 1 300 boats. The thing that really made the difference was to move it from a spring show to a fall show. It moved sites but it ended with Bahia Mar as the center. Those two things I think were the catalysts. This show is kind of in the middle as boats are transitioning from Europe to the Caribbean. This was an ideal spot for them to show their boats to get charters and to get sales. The other thing that happened was shipyards grew up as the show grew. This became a great place to get work done on boats. What can the business community do to help support the boat show and maybe the industry in general The business community needs to vote with their influence and their dollars and their persuasion to make sure the infrastructure that makes the boat show possible and the marine industry possible survives. To get the biggest boats we need the channels going down the coast and those fill up periodically. They need to be dredged to 15 to 18 feet not just down center of the channel but off to the various marinas and yards. That s been a real problem getting that done. It s been a problem financially because people say These are bunch of fat cats who you know they can pay for it themselves. There are 100 000 jobs in Florida supported by this industry and every time one of these boats moors it s 20 000 to 100 000 to fill it up with fuel. There s the flooring the propeller shops provisions carpenters the cleaners the painters all these people that support it. These yachts are not toys they re companies they re industries that employ a lot of people. Another part of it is just real estate making sure that we have access to the ocean. We don t want to use up all of our access points and marinas with real estate development that takes away slips for yachts and super yachts. The third thing is probably the most critical skills. We need to train staff workers to do the carpentry to do the metal work to do the paint work to do all of the things that it takes to maintain produce and operate these beautiful creatures. And you know they re not naturally coming out of high schools and trade schools. December 2014 November 33 James Constantine Brett Keating and Skip Zimbalist These yachts are not toys they re companies they re industries that employ a lot of people. The boat show has been around for 55 years so how do you keep it relevant and cutting edge We do a survey every year of exhibitors and attendees. We pay a lot of attention to what they say and they don t pull any punches. When we talk to consumers we ask them what s the No. 1 reason you come to the boat show and they say to buy a boat or to look at prices or see new models. Those are all in the top five. The No. 1 reason is to have fun. Different people have different definitions of fun. Some people think looking at every radar system on the planet and comparing them is fun. Some people think about talking to the chief engineer is fun but a lot of people think the cocktail bars with music are fun and looking at the people wandering around or just looking at the beautiful boats is fun. We ve tried to keep it fresh and keep new things happening. The best thing that makes it relevant is exhibitors who are showing beautiful designs and new products whether it be yachts or the accessories or engines. Our part is to make sure that we re providing an environment that is world class and is fun and is luxurious and that is conducive to people coming from all over the world and having a good time. So what s your biggest worry what could go wrong The weather is always a worry at this particular show and we ve moved it a week later just for that because we re at the tail end for hurricane season on the bell curve and every week that you move it reduces the chances. Another worry is competition. There are a lot of organizations that would love to have a Fort Lauderdale boat show and they would like to do it at Palm Beach or they would like to do it in Miami or they would like to do it in Newport or lots of different locations. The third worry is people who are denigrating successful people who have the funds to buy whether it s a 20-footer or 200-footer that they are the 1 percent and somehow not good. It s very unhealthy not just for our industry but for our country and I hope that stops soon. Angie Davis Tom Houliares and Rachel Barzilay CE CONNECT WHERE SOUTH FLORIDA S ELITE MEET SFBW s CEO Connect is an invitation-only event that combines high-level networking with cocktails and appetizers plus a live interview with a top business executive. 34 December 2014 2014 APOGEE AWARDS APOGEE AWARDS Celebrating the Pinnacle Welcome to the inaugural Apogee Awards a tribute to the success of twenty-four C-level executives throughout South Florida. The region has many business awards programs but this one is unique. Rather than having an awards program for each position such as a CEO awards program one month and a CFO awards program another month we thought it would be great to bring in the C-suite for our awards program which was held on Nov. 6 at SFBW Publisher Kevin Gale the Museum of Art Fort Lauderdale. For example this allowed the chairman of one company to meet and network with a chief marketing officer from another company or the top HR executive of one company to meet the CEO of another company. We think there is a huge benefit in allowing these savvy driven achievers to be able to share important experiences challenges and lessons learned. South Florida has a broad geographic sweep so it is rare to have this group all in one place at one time. How did we get to twenty-four honorees It s simple math Eight categories and one honoree in each county per category. To get our nominations we sent emails and did outreach throughout the South Florida business community. Our editorial staff did substantial research to help vet the quality and achievements of our honorees. One of the things we like about the Apogee Awards is that it gives widespread public recognition to positions that often play key behindthe-scenes roles in the success of a business. Chief operating officers and chief marketing officers for example can be incredible drivers in the success of a business but often are not highly visible public faces. All of this would not be possible without our sponsors. Special thanks goes to presenting sponsor Mitch Kramer and his Octagon Family of Recruiting Companies (including its divisons of Octagon Technology Staffing and Octagon Professional Recruiting). We would also like to thank our additional sponsors BankUnited Index and DataFile Coral Gables Trust and the Museum of Art Fort Lauderdale. Sincerely Top Business Event Eight honoree categories. Three counties. Twenty-four total honorees representing a who s who of the most accomplished business executives in South Florida What an exciting event the 1st Annual Apogee Awards presented by the Octagon Family of Recruiting Companies in partnership with Lifestyle Media Group and its magazine South Florida Business & Wealth (SFBW). An octagon has eight sides to it and the Apogee Awards is CEO of Octagon Mitch Kramer honoring eight in each county. What makes this event so special Most of the events that I have gone to over the years in South Florida have recognized one category by itself and I think that is great but when SFBW Chairman and CEO Gary Press and I sat down and started discussing what Corporate America is really about these days we felt the collaboration of all the C-suite executives being recognized in one function was a powerful statement of how closely departments are working together these days and how critical it is for Finance Information Technology Human Resources Operations Marketing along with the offices of the President CEO COO and Chairman to work hand-in-hand to run their companies effectively and with the highest level of success. The match between Lifestyle Media Group and the Octagon Family of Recruiting Companies (including its divisions Octagon Professional Recruiting and Octagon Technology Staffing) couldn t make more sense to me. SFBW is an entrepreneurial magazine targeting the South Florida business community with a circulation unmatched by its competitors. Octagon is an entrepreneurial explosively growing professional recruiting firm with offices in Fort Lauderdale MiamiDade and Boca Raton. SFBW shares cutting-edge information on all types of interesting people and topics in the community. Octagon connects the top-talent in the marketplace with those same companies specializing in the areas of accounting finance technology human resources and general search. On behalf of the entire Octagon family I am both proud and humbled to have attended this event with such a remarkable group of honorees many of whom I already know. I would like to personally congratulate each and every honoree for being selected by the editorial panel of SFBW. 2014 marks the first of many years of partnership with SFBW and I want to thank the SFBW team for making this a wonderful experience for us Warm regards KevinGale Kevin Gale Publisher and Editor-in-Chief South Florida Business & Wealth Mitch Kramer CEO of Octagon 38 December 2014 CONGRATULATIONS to all the Honorees and Winners December 2014 39 1750 ATTORNEYS 36 LOCATIONS WORLDWIDE Greenberg Traurig congratulates the APOGEE AWARD HONOREES and applauds this year s recipient of the Miami-Dade SFBW President of the Year Award CARLOS ROSSO President of Condo Development The Related Group Please join us as we commend these individuals for their professional achievements and for their support of the communities where they live and work. Miami Roots Global Reach. IRIS V. ESCARR SHAREHOLDER 333 SE 2ND AVENUE SUITE 4400 MIAMI FL 33131 305.579.0500 G R E E N B E R G T R A U R I G P. A . AT T O R N E Y S AT L AW W W W. G T L AW. C O M Greenberg Traurig is a service mark and trade name of Greenberg Traurig LLP and Greenberg Traurig P.A. 2014 Greenberg Traurig LLP. Attorneys at Law. All rights reserved. These numbers are subject to fluctuation. 24387 On behalf of the entire team at OCTAGON I would like to personally congratulate each and every honoree this evening at the 1st Annual Apogee Awards event. Your accomplishments at your companies and your commitment to the community are what set you apart. Enjoy this wonderful evening. It is all about honoring each of you and we are proud to be able to be a part of this unique and special event FA M I LY O F R E C R U I T I N G C O M PAN I E S MIAMI-DADE FT. LAUDERDALE BOCA RATON December 2014 41 Martin z. margulies collection american scene photography ON VIEW THROUGH MARCH 22 One East Las Olas Boulevard Fort Lauderdale FL 33301 (954) 525-5500 Sponsored by the David and Francie Horvitz Family Foundation Bonnie E. Eletz Art4Vision Foundation and Scott R. Anagnoste. American Scene Photography Martin Z. Margulies Collection is organized by NSU Museum of Art Fort Lauderdale and is curated by NSU Museum of Art Director and Chief Curator Bonnie Clearwater. The exhibition is made possible in part by a challenge grant from the David and Francie Horvitz Family Foundation. Funding for this exhibition also provided in part by the Broward County Board of County Commissioners as recommended by the Broward Cultural Council and Greater Fort Lauderdale Convention & Visitors Bureau. Sponsored in part by the State of Florida Department of State Division of Cultural Affairs and the Florida Council on Arts and Culture. Image Alec Soth (b. 1969) Charles Vasa MN 2002 C-print 391 2 x 311 2 in Martin Z. Margulies Collection. Coral Gables Trust Company is a leading provider of Wealth Management and Trust Services in South Florida. Founded in 2004 as a locally owned and operated independent trust company Coral Gables Trust serves a client base ranging in size from 1 million to over 50 million which includes affluent individuals and families small to medium sized companies foundations and pension and endowment funds. Coral Gables Trust strives to provide totally conflict-free services to clients combining personalized advice and service open-architecture (no proprietary products) asset based fees and a culture totally devoted toward putting our clients interests first. Fort Lauderdale 401 E. Las Olas Blvd. Suite 1400 Ft. Lauderdale FL 33301 Tel 954.707.6899 Main Office Coral Gables 255 Alhambra Circle Suite 333 Coral Gables FL 33134 Tel 786.497.1212 West Palm Beach 500 South Australian Avenue Suite 620 West Palm Beach FL 33401 Tel 561.820.4844 December 2014 43 APOGEE AWARDS THE HONOREES CHIEF EXECUTIVE OFFICER Fortune International Group Edgardo Defortuna founded Fortune International Group in 1983 and has grown the company to become a full-service real estate fi rm recognized throughout South Florida Latin America and Europe as a leader in high-end luxury real estate. The fi rm has sold luxury condominiums across South Florida s best neighborhoods including Brickell Avenue Key Biscayne Coral Gables Miami Beach Aventura and Sunny Isles Beach. The fi rm has a presence in Brazil Colombia Peru Venezuela Mexico and his homeland Argentina. Defortuna is expanding Fortune s presence into Europe with initial focus on such markets as Spain Britain France and Russia. He is widely recognized for making a significant contribution to the internationalization of Miami and its reputation as a global business trade and vacation hub. Defortuna is a member of the Mayor of Miami s International Council and serves as president of the Argentine-U.S. Chamber of Commerce in Miami. EDGARDO DEFORTUNA DADE COUNTY BROWARD COUNTY Stonegate Bank Dave Seleski founded Stonegate in 2005 and has made it one of the fastest-growing banks in Florida with offices in Miami-Dade Broward Palm Beach Collier Lee and Hillsborough counties. With the recent acquisition of the Community Bank of Broward Stonegate Bank grew to 17 branches and offices statewide with 2.2 billion in assets. The acquisition made it the 10th largest bank in Florida. In 2002 Seleski was named president CEO of the Southeast Florida division of Florida Bank until its sale in July 2004. He previously served as regional manager of private banking for SouthTrust where he started the private banking division. He served as a commercial lender for Enterprise National Bank in Palm Beach Gardens and began his banking career in 1989 with Southeast Bank in West Palm Beach and Fort Lauderdale. He is on the board of the Florida Bankers Association Broward County American Red Cross and the Community Bank Advisory Board for the FDIC. DAVE SELESKI PALM BEACH COUNTY Boca Raton Regional Hospital Inc. The name Jerry Fedele is synonymous with South Florida healthcare innovation. He has more than 25 years experience as a healthcare lawyer law professor and CEO in academic and regional health care systems. Over the last 15 years he has focused on restructuring and improving fi nancially challenged hospitals and he has been credited with saving a major academic hospital and three community hospital affi liates from the largest health-care bankruptcy in U.S. history. He oversaw the effort to improve operations by 60 million over 18 months at Boca Raton Regional which changed its name from Community to Regional hospital to better reflect its mission. The hospital has garnered record levels of philanthropic support and has clinical programs in cardiac care vascular surgery oncology neurosciences women s care advanced robotic surgery and graduate education programs in medicine and surgery. JERRY FEDELE 44 December 2014 December 2014 45 APOGEE AWARDS THE HONOREES PRESIDENT The Related Group Condo Development Division Carlos Rosso has been a key figure behind the region s surge in condominium development since joining The Related Group in 2002. Rosso was recruited for his depth of experience in construction project fi nancing land acquisition sales and marketing to direct all aspects of residential development in Florida Mexico Colombia Argentina and Uruguay. Throughout his career Rosso has developed more than 20 properties with more than 6 000 units. He has worked as vice president of real estate development for Investment Properties in Boston and spent 10 years as project director for Besix International overseeing the development and construction of more than 10 million square feet of multi-family hotel and office buildings in Europe the Middle East and Africa. CARLOS ROSSO DADE COUNTY BROWARD COUNTY American Heritage School William R. Laurie M.Ed. has made education his life s calling. As a child he struggled with dyslexia and hyperactivity which later served as inspiration to build schools for children with learning differences. In 1952 a former elementary school teacher asked Laurie to teach fourth grade. He enrolled in a master s degree program in reading learning disabilities administration and supervision at the University of Florida. While working on his degree he became an elementary school principal. After serving in the Korean War he moved to Fort Lauderdale and was named principal of Broward County s fi rst school for children with mild learning differences. In 1971 he opened American Heritage School in Fort Lauderdale and in 1972 he opened a school in Hollywood. In 1982 he merged the two into American Heritage s 40-acre location in Plantation. He has since opened a 40-acre campus in Delray Beach. American Heritage is the largest private prep school in Florida with 2 400 students. WILLIAM R. LAURIE PALM BEACH COUNTY Greenspoon Marder Law William Berger is one of South Florida s most seasoned and successful attorney and litigator. With almost 40 years of experience and relationships Berger now focuses his efforts on the growth and development of a fi rm that has more than tripled in size in less than 10 years. He is managing shareholder for the fi rm s three Palm Beach County offices and is co-chair of the litigation department. Berger calls himself a businessman who practices law. He has become an invaluable consultant and trusted advisor to his clients which include banks insurance companies real estate developers and country clubs. Berger s role as a community leader includes his work with economic development organizations and community and charitable groups. President Obama honored Berger in 2010 with the President s Call to Service Award the highest honor awarded by the President s office for extensive service to the community. BILL BERGER 46 December 2014 December 2014 47 48 December 2014 December 2014 49 APOGEE AWARDS THE HONOREES CHAIRMAN JOHN KANAS BankUnited Inc. DADE COUNTY ARTHUR KEISER Keiser University Southeastern College BROWARD COUNTY PALM BEACH COUNTY SBA Communications Corporation Steven E. Bernstein sensed opportunity was in the air when he founded SBA Communications in 1989. He had been with McCaw Cellular Communications where he helped develop the initial cellular system and sales system in Pittsburgh. He founded SBA to develop build and acquire cell phone towers. Today the company owns approximately 22 000 towers throughout the U.S. Brazil Central America and Canada. It has a market cap of approximately 14 billion. SBAC has made the Inc. 500 list of fastest growing companies four years in a row and the Forbes 100 Most Innovative Companies worldwide. Both the Personal Communications Industry Association and Bernstein s alma mater the University of Florida named him as Entrepreneur of the Year. He is a visiting professor at Lynn University and serves on the board of Home Safe Love Thy Neighbor Spanish River High School Foundation and the Steven Bernstein Family Foundation. STEVEN E. BERNSTEIN John Kanas isn t known just in South Florida as a leading banker. Last year Crain s New York Business named him The city s most successful community banker over the past 30 years. At 29 he was named one of the country s youngest bank CEOs when he took the helm at North Fork Bank in his native Long Island. He led the bank to an IPO and inclusion in the S&P 500 Index and ultimately its position as the 16th largest bank in the U.S. In 2006 he sold North Fork Bank to Capital One for more than 400 percent of its tangible book value. He later led a group in the 940 million acquisition of a failed thrift beginning a transformation of Miami Lakes-based BankUnited. In 2011 he took BankUnited public. In 2013 BankUnited N.A. opened its fi rst branches in New York and by year s end it had 15 billion in assets and 105 locations in Florida and New York. The John and Elaine Kanas Family Foundation recently made a 1 million gift to United Way of Miami-Dade County. A higher education leader of 35 years Arthur Keiser heads a private not-for-profit academic institution comprised of 26 campuses in Florida and the Southeast U.S. with some 20 000 students and more than 3 500 staff. He was appointed to the Florida State Board of Independent Colleges and Universities and the State Board of Independent Postsecondary Vocational Technical Trade and Business Schools. He has served as president of the Florida Association of Postsecondary Schools and Colleges. Keiser is serving his second term on the board of the National Advisory Committee on Institutional Quality and Integrity. He serves as chairman of Association of Private Sector Colleges and Universities (APSCU). Belinda and Arthur Keiser also established the Keiser Mills Foundation to provide educational leadership and professional experiences in the areas of international entrepreneurial STEM (science technology engineering and math) and health care. 50 December 2014 SBA Communications Corporation congratulates steven e. bernstein Founder and Chairman of the Board and all of the other honorees in the 2014 APOGEE AWARDS in our business it is all about the signal. 800.487.SITE December 2014 51 Oasis Outsourcing congratulates Dr. Arthur Keiser Chancellor and CEO of Keiser University an honoree of the 2014 Apogee Awards. For information on the value Oasis Outsourcing can bring to your business contact us at 866-709-9401 or visit us online at HR SERVICES EMPLOYEE BENEFITS PAYROLL ADMIN RISK MANAGEMENT AIR CONDITIONING REFRIGERATION SALES SERVICE INSTALLATIONS Arthur Keiser Ph. D. Apogee Awards Chairman for Broward County. Airstron is proud to be part of the Keiser University Team What a tribute to your leadership that you are being recognized as the Congratulations to Prestigious Honor on being selected for this 1559 SW 21st Avenue Fort Lauderdale FL 33312 (954) 923-1654 Airstron 52 December 2014 December 2014 53 APOGEE AWARDS THE HONOREES CHIEF OPERATING OFFICER Fairchild Tropical Botanic Garden Inc. Since being named COO with Fairchild Tropical Botanic Garden Nannette M. Zapata has had a vision. Not only did she want to grow its stature she hoped to make it a place of holistic beauty. She s done both. Zapata joined Fairchild in 2002 and has developed and implemented a series of visionary initiatives at the 85-acre gardens that celebrates orchids chocolate and tropical fruit. Membership is up 500 percent and the additional revenue increased fi nancial support for the garden s horticultural scientific cultural and educational programs. She has overseen the design and construction of the Science Village Complex and Wings of the Tropics Exhibit and the Arts Building. Zapata also established Fairchild as a showcase for art that compliments the garden s natural ambiance and vistas. Artists have include Botero Chihuly di Suvero Kusama and Lichtenstein. NANNETTE M. ZAPATA DADE COUNTY BROWARD COUNTY Stiles Corporation Hands-on experienced and driven Steve Palmer has spent more than three decades with Stiles. Hired as an estimator in 1979 he has since held such positions as project manager construction manager vice president and then president of Stiles Construction Co. before assuming his current role as COO in 1994. During his tenure Stiles Construction Co. acquired major contracts for design build assignments independent contracting jobs and development projects currently totaling more than 1 billion. He keeps expanding his scope taking on the next big challenge said Stiles Chairman and CEO Terry Stiles when Palmer was inducted into the M.E. Rinker Sr. School of Building Construction Hall of Fame at the University of Florida. He has recieved awards such as Citizen of the Year from the Building and Office Managers Association Crystal Butterfly from Kids in Distress and Spirit of Broward from the Broward Economic Development Council. STEVE PALMER PALM BEACH COUNTY St. Mary s Medical Center Bulfi n has spent three decades at St. Mary s Medical Center in West Palm Beach beginning in 1980 as an RN in the Neonatal Intensive Care Unit. She was named chief nursing officer in 2005. Bulfi n oversees hospital operations of both clinical and non-clinical departments. Her background of clinical and operational knowledge and history of working strategically with physicians has helped solidify her important role. This will only become more important as she is actively involved in guiding the hospital through an increasingly challenging healthcare environment. In 2009 Bulfi n was appointed by the governor to the board of directors for the Florida Center for Nursing. As a member of Tenet s senior leadership team Bulfi n assisted St. Mary in being awarded the Tenet Circle of Excellence Award for outstanding hospital performance in 2009 and 2011. JOEY BULFIN 54 December 2014 is proud to congratulate the Honoree for the Miami Dade Apogee Awards CEO EDGARDO DEFORTUNA of FORTUNE I N T E R N AT I O N A L GROUP REQUIRES financing Desire Choosing the right mortgage loan is just as important as choosing the right home. At BankUnited our dedicated team of loan specialists are here to help you find the Jumbo or Super Jumbo mortgage loan that s right for you whether it s to purchase or refinance a primary home second home vacation home or investment property. Programs for foreign nationals are also available. COMPETITIVE RATES. CONCIERGE-STYLE SERVICE. EXPEDITED LOAN APPROVALS. Contact James R. Venney today to discuss your next move. James R. Venney Market Leader - Florida Residential Lending (305) 389-5061 NMLS 389321 All loans are subject to credit and property approval. Program terms and conditions are subject to change without notice. Other restrictions limitations and fees may apply. All loans are offered through BankUnited N.A. NMLS 418452 December 2014 55 APOGEE AWARDS THE HONOREES CHIEF MARKETING OFFICER Greater Miami Convention & Visitors Bureau In the 20 years since he joined the Greater Miami Convention & Visitors Bureau Rolando Aedo has aided in the evolution of the Greater Miami brand and the emergence of the region as a major international destination. He works closely with CVB leadership on all operational aspects including governmental relations and stakeholder engagement. Beyond advertising digital marketing public relations travel industry relationships and research he also oversees the bureau s partnership program with some 1 000 local industry stakeholders. Among the programs he helped create are the Miami Spice Restaurant Month Miami Spa Month the It s So Miami campaign and the Miami Begins with Me customer service program. Aedo recently was named one of the top 25 extraordinary minds in sales and marketing by the Hospitality Sales and Marketing Association International. ROLANDO AEDO DADE COUNTY Greenspoon Marder Law ROSY LOPEZ BROWARD COUNTY LENNY CHESAL PALM BEACH COUNTY With more than 20 years experience in legal marketing Lopez oversees all of Greenspoon Marder s business development and marketing initiatives. She has extensive experience in all marketing disciplines including community and public relations branding competitive analysis public speaking coaching budget development and management. She works closely with fi rm leadership in developing and implementing short- and long-term strategic plans and tactics to deliver measurable business growth and brand awareness for the fi rm. She is chair of the steering committee for the United Way of Broward County s Women s Leadership Council. In August she was elected to the board for ARC Broward which provides services to children and adults with developmental challenges. She serves on the Winterfest Advisory Board and the Winterfest Black Tie Ball Committee. Lenny Chesal has been with since 2004 and has been responsible for the company s sales marketing and business development initiatives building on 30 years of diversified experience in sales marketing and executive management. Chesal is the past chairman of the South Florida Technology Alliance co-chair of IT Palooza and sits on the board of the FAU Information Technology Operations Management. He is a member of the Palm Beach State College Business Partnership Council for B.A.S. Degree in Information Management. He is also the inaugural chair of the American Cancer Society-Relay for Life Deerfield Beach Lighthouse Point Hillsboro Beach and is involved with Big Brothers Big Sisters Cystic Fibrosis Foundation Volunteer Leadership Initiative the Boca Raton Chamber of Commerce as a trustee Workforce Alliance Infotech Workforce Development and Nova Southeastern University s Graduate School of Computer and Information Science. 56 December 2014 Congratulations to our 2014 SFBW Apogee Award Honorees William Berger Esq. President - Palm Beach william.berger Rosy Lopez CMO - Broward rosy.lopez At Greenspoon Marder Law it s all about YOU. We are committed to providing sophisticated and distinctive client service through our cross-disciplinary Client Team approach. Our goal is to understand the challenges that YOU face and build collaborative relationships and craft creative solutions designed and executed with long-term strategic goals in mind. We serve Fortune 500 middle market public and private companies start-ups emerging businesses and entrepreneurs across Florida and the United States. Aventura l Boca Raton l Fort Lauderdale l Miami l Naples l Orlando l Port St. Lucie l Tampa l West Palm Beach December 2014 57 APOGEE AWARDS THE HONOREES CHIEF FINANCIAL OFFICER DADE COUNTY Warren Henry Auto Group ERIK DAY BROWARD COUNTY JEANNE PRAYTHER e-Builder Inc. PALM BEACH COUNTY ADT Security Services Michael Geltzeiler is responsible for all aspects of fi nance treasury and investor relations fi nancial strategy to help grow business operations and create shareholder value at the residential and business security company ADT Security Services which serves 6 million customers in the U.S. and Canada. Geltzeiler has more than 30 years of fi nancial leadership and investor relations expertise including extensive capital markets knowledge and experience at companies with subscriber-based revenue models. Before joining ADT in November 2013 he served five years as CFO and Group Executive Vice President at NYSE Euronext. He held fi nancial leadership roles at ACNielsen Corp. and Dun & Bradstreet. Geltzeiler serves on the board of trustees for University of Delaware the Museum of American Finance and the Madison Square Boys and Girls Club. MICHAEL GELTZEILER Erik Day oversees multiple dealerships and companies representing leasing auto parts rental cars and software. He has been CFO for almost a decade and works closely with the entire management team to provide supporting oversight on both strategic and tactical operational matters involving sales service and parts. Day has been in the automotive business for 20 years in the areas of captive fi nance manufacturer and retail. He began his career with Ford Motor Credit and soon was rising in commercial lending for World Omni SET Finance. He was instrumental in the start-up of the company s private label business. He was also co-developer in 1996 of Famas Avanti fi nancial software for the analysis and reporting of automotive dealership data. His later posts include assignments with Jaguar Land Rover North America. He is on the board for the Florida Automobile Dealer Association. Jeanne Prayther is a CPA who has built her 25-year career in the building services technology and consulting industries. Before joining e-Builder in 2014 she was CFO of Prolexic Technologies where she led a sale of the company to Akamai Technologies for 400 million. She was previously CFO of Maritime Telecommunications chief accounting officer of Woodbridge Holdings vice president and corporate controller of Mastec Inc. and CFO of Daleen Technologies. Prayther served with KPMG LLP where she was senior assurance manager with specialties that included auditing fi nancial reporting compliance and the design and implementation of fi nancial controls and procedures for privately held and publicly traded clients. Along with being the senior manager of various-sized audit clients she was involved in many initial public offerings and performed due diligence procedures for acquisitions. 58 December 2014 We always knew Mike Geltzeiler was a Top CFO. Now all of South Florida knows too. Congratulations on receiving the Apogee Award. Thank you for keeping our customers just as secure as our financial health. December 2014 59 APOGEE AWARDS THE HONOREES CHIEF INFORMATION OFFICER ALEXANDER FREUND 4IT Alexander Freund has more than 30 years of experience as an IT professional and leads 4IT s technical engineering and administrative staff in the delivery of a complete suite of information technology services. This includes an award-winning Help Desk Network Operations Center (NOC) and an On-Site Field Service team. He also oversees the company s Palmetto Bay Village Center co-location and hosting facility. Under his leadership 4IT became a member of the 2014 Inc. 5000 after experiencing a 77 percent three-year growth increase. His career started as a process control software engineer with Dow Chemical Corp. He was later hired by Centrust Bank as a senior office automation specialist. In 1989 he formed CompuSol a software engineering fi rm. In 2003 he founded 4IT with Ray Mobayed. In the community he and 4IT work with the Family Resource Center of South Florida. DADE COUNTY JUDITH HADDAD Patriot National Inc. BROWARD COUNTY PALM BEACH COUNTY TODD HALE Office Depot Inc. Throughout her career Judith Haddad has leveraged her knowledge and skill to improve the insurance industry s embrace and use of technology. She has been vice president of information technology for NYMAGIC a New York-based multi-line insurance carrier and she held senior executive consulting roles with Blue Cod Technologies and Service Soft Technologies. She also has held various executive and technical management positions with NCCI CGU Insurance and Hanover Insurance companies. She was named a member of the IT All-Star team in Tech Decisions magazine in 2011 and was a guest speaker on the topic of iPad technology in the workplace at the 2011 CEB TowerGroup annual conference. In 2013 she was named an Elite 8 recipient an honor presented by Insurance Technology. At Patriot National she was awarded a 2014 Impact Award from Novarica for replacement of Patriot s legacy system. Todd Hale is responsible for defi ning Office Depot s IT architecture managing and overseeing IT projects and portfolio decisions planning and developing applications supporting business operations and ensuring the security of IT systems and processes. He assumed his current role in December and previously served as the company s senior vice president and North American CIO. Hale has led a number of transformational initiatives at Office Depot including deployment of global merchandising supply chain and e-commerce solutions. Hale joined Office Depot in 2004 after previously holding IT leadership positions with the Eckerd Corp. He began his career in retail consulting for Procter & Gamble and Walmart. 60 December 2014 Congratulations to our President & CIO for being honored as the Apogee CIO for Miami-Dade County. Alexander Freund Congratulations to all of the Apogee Honorees 4IT is a South Florida based technology company providing strategic IT consulting infrastructure management network and project engineering helpdesk support telecommunications and structured cabling to public and private sector clients. Since 2003 4IT has delivered enterprise-level IT practices technology solutions and support specializing in multi-site regional and international clients with complex IT environments that need 24x7 support. Miami-Dade Ft. Lauderdale Enterprise Data Center 12595 SW 137th Ave Suite 301 Miami Florida 33186 305.278.7100 6301 NW 5th Way Suite 5001 Ft. Lauderdale Florida 33309 954.341.6100 18001 Old Cutler Road Suite 356 Palmetto Bay Florida 33157 305.278.7100 Executive Vice President and Chief Information and Technology Officer on being selected as Judith Haddad Broward County CIO of the Year. Congratulates Patriot National This recognition is a testament to Judy s achievements both at Patriot National and within the IT industry as a whole. We look forward to many years of continued contributions from Judy. December 2014 61 APOGEE AWARDS THE HONOREES SENIOR HUMAN RESOURCES EXECUTIVE TEDD TRABERT Health Choice Network Inc. DADE COUNTY BROWARD COUNTY CYNTHIA FRASER DHL PALM BEACH COUNTY Office Depot Inc. From banking to apparel to office supplies Michael Allison s career in human resources has taken a varied path. Yet his work has remained constant to oversee and advance the role HR plays in the greater organization. Allison was promoted to executive vice president and chief people officer for Office Depot in December. In his role Allison is responsible for all global HR functions including compensation and benefits talent management associate relations organizational development and training and diversity and inclusion. Allison fi rst joined Office Depot in 2006 as vice president of human resources and was later named the retailer s executive vice president of HR. Allison began his career as an attorney specializing in labor and employment law and has worked as executive vice president of HR for Victoria s Secret Direct senior VP of HR for Bank One and senior VP and director of HR for National City Bank both in Dayton Ohio. MICHAEL ALLISON Tedd Trabert oversees all human resources and operations for The Health Choice family of organizations which includes Health Choice Network and Health Choice Network of Florida. He works with a national collaboration of 43 nonprofit community health centers in 11 states that reaches more than 800 000 patients. Trabert also manages human resources and operations for Health Choice Care an accountable care organization dedicated to improving healthcare for some 17 000 Medicare enrollees. He previously worked with US Airways Continental Airlines Home Depot and Jetway Manufacturing. He mentors aspiring HR professionals each month at the American Society for Healthcare Human Resources Administration (ASHHRA) where he is serving his second term as director. He is a member of the Greater Miami Chamber of Commerce and is on the Wilton Manors Community Affairs Action Board. Other organizations include Kaboom and The United Way. Cynthia Fraser is not only a senior human resources executive but also a business partner with strategic and tactical skills. Peers have lauded Fraser for combining the rare assets of being a strategic HR partner driving initiatives that drive results with being [a] productive efficient and calming HR generalist. She is responsible for recruitment talent management employee relations and compliance. She has also provided skills training to managers on behavioral-based interviewing and confl ict resolution techniques. As vice president of corporate HR with Burger King Corp. Fraser was awarded Best In Class for the company s career website and received The Burger King CEO Award. As Director of HR Systems she implemented an SAP HR payroll system and rolled out an employee and manager self-service portal. She most recently was vice president of HR for GL Homes. 62 December 2014 December 2014 63 64 December 2014 SOUTH FLORIDA S BUSINESS LEADER South Florida Business & Wealth (SFBW) magazine is the leading provider and trusted resource for business wealth and economic information affecting the region. To subscribe or advertise call 954.377.9566. SFBWMAG.COM 65 December 2014 APOGEE AWARDS Alexander Freund center celebrates being honored with an Apogee Award in the CIO category APOGEE AWARDS The SFBW Apogee Awards were handed out during a gala celebration at the Museum of Art Fort Lauderdale on Nov. 6. Honorees guests and sponsors celebrated with a pre-awards event cocktail party with live music on the second floor of the museum which is part of Nova Southeastern University. Many of the honorees brought family and members of their business teams to help celebrate the occasion. The awards program then moved to the museum theater with a high-energy program that included a juggling performance by Variety Entertainment of Davie. There were plenty of cheers as honorees walked on stage to accept their awards. SFBW Chairman and CEO Gary Press holds one of the entertainer s glowing pins THE 2014 66 December 2014 APOGEE AWARDS Todd Hale Michele Allison & Michael Allison Gerry Litrento and Howard Dvorkin Jerry Fedele far left and his team Nicole Roman Bonnie Judson and Perla Lichi Honoree Lenny Chesal second from the right along with family and peers Mitch Kramer and Gail Guerra Clayton Idle Tatiana Eyzagure and Tom Godart Howard Dvorkin Kip Hunter and Joey Epstein December 2014 67 SFBW AGENDA Sweet deal Hoffman s Chocolate expands Hoffman s Chocolate is known for four stores in Palm Beach County and one in Stuart but is now making a big push further south. This is a really big year for us says Jarett Levan President of BBX Capital. First of all BBX Capital that owns Hoffman s Chocolate Another store is coming at The Fountains in Plantation in January and holiday shoppers can expect pop-ups at Sawgrass Mills Broward Mall and The Galleria Mall. Hoffman s will be celebrating its 40th year in 2015. While it s been a Palm Beach County brand for many years Hoffman s has had a following in Broward County for just has long. We have had many customers visit our Palm Beach stores Hoffman s Chocolates on Las Olas Team Jack Abdo Kathleen Cannon Lisa and Ken Crawford Barbara and Scot Hunter and Joey Epstein Alan Levan Seth Wise Jack Abdo Jarett Levan Mayor Jack Seiler Lois Marino and Debbie Goldin is headquartered on Las Olas so we thought it would be appropriate to open our first store there. or our factories in Greenacres to get there chocolate fix. We thought it was appropriate to bring Hoffman s to them instead Levan says. About 75 new employees will be hired in Broward and Palm Beach and Levan expects a further expansion into MiamiDade County. BBX Sweet Holdings has five other chocolate companies Bennett s chocolates and Anastasia Confections in Florida and Williams & Bennett Jer s Chocolates and Helen Grace Chocolates in California. Levan says This is a very exciting industry and we will continue to acquire other companies. We re fans of debate SFBW hosted a mock gubernatorial debate on Oct. 21 at The Atlantic Resort & Spa on Fort Lauderdale Beach. Steve Geller former minority leader of the Florida Senate served as the stand in for former Gov. Charlie Crist. Geller who is a shareholder at Greenspoon Marder 68 December 2014 Ben Porritt Heidi Porritt and Johathan Sherry Pichael Rizzo Ely Benaim and Kevin Gale wage increases with audience members concerned about the impact that might have on businesses in Florida. Time to ring the real estate register Jay Olshonsky president of NAI Global says prices in New York have peaked and may have peaked in Miami as well so it may be time to sell. If you have made money in the last three or five years don t worry about the taxes. They are really low he said at the inaugural NAI Florida Forum in Coconut Grove. SFBW was the media partner for the event. The event had presentations for NAI s 11 Florida markets and economic analysis. Karen Gilmore Vice President & Regional Executive for the Atlanta Fed s Miami branch said there is a The debaters Ed Pozzuoli and Steve Geller was a member of the state legislature for 20 years. Standing in for Gov. Rick Scott was Ed Pozzuoli president of the Tripp Scott law firm. Pozzuoli makes frequent appearances on Fox News and was a member of the Bush Cheney recount litigation team in 2000. There were plenty of jokes about fans in the wake of the second gubernatorial debate but Geller and Pozzuoli were a lot more relaxed and humorous than the real opponents. One of the biggest topics turned out to be the impact of minimum lot of study about the changing nature of the U.S. workforce. While the unemployment rate has dropped there s a lot of scrutiny about marginally attached workers and those working part time. The Atlanta Fed doesn t expect interest rates to increase until mid-2015 Gilmore said. J. Antonio Villamil founder and principal of the Washington Economics Group outlined how Florida is exceeding the nation in economic activity which has been a huge support for real estate activity. While Villamil s talk was positive he said it s important to avoid the Ostrich Effect because of economic uncertainty in Europe questions about what Russian leader Vladimir Putin will do next and the impact of ISIS and ebola. He expects regulatory action to slow down with the new GOP dominated December 2014 69 Mimi and John Bauer with Maria Meyer at Caymus for a Cause Senate. Villamil who served as undersecretary of commerce for president George H.W. Bush was asked about the prospects of Jeb Bush running and said I hope he does but that s up to him. Abby Lindenberg told about Oxford Business Group s Latin American business intelligence which now includes Mexico Colombia Peru Panama and Trinidad & Tobago. One tidbit she mentioned is that young wealthy Mexicans are more likely to do business in Miami than the previous generation. Manny Mencia a senior VP with state economic development arm Enterprise Florida gave perspective on the size of the state economy. Its 800 billion in GDP is a little smaller than Turkey and larger than the Netherlands. Florida s population is about 19.55 million the state has probably already passed Florida to rank as the fourth most populous state. TechAmerica ranks Florida No. 3 for hightech establishments and the state has 28.4 percent of U.S. trade with Latin America and the Caribbean. There s a tale of two Latin Americas these days he says. There are the open economy nations that include Peru Mexico Chile Panama and Colombia. Venezuela Argentina and Brazil are struggling because they follow the populist statist line. It s strange why some nations don t get it he said. Children s Center. The event on Oct. 29 at Alpine Jaguar raised almost 6 500 dollars for the center which helps to break the cycle of poverty for children of low-income working families in Broward County through family-oriented child care services and family intervention and support. Rick Case Kia holds topping out Rick Case Automotive Group hosted a topping out ceremony for the new Rick Case Kia dealership which is located on Sunrise Boulevard at the Sawgrass Expressway. The five-story 260 000-square-foot dealership will be Rick Case s first in the Sawgrass Mills area and is billed as the largest Kia dealership in the world. Rita & Rick Case national and local Kia factory representatives Sunrise city officials Stiles construction executives community leaders and VIPs were on-site to celebrate the last piece being placed at the top of the building. Rick Case Kia will feature 600 new and used cars inside under showroom lights on 5 floors and will open with over 100 employees that will grow to a staff of over 150. This is the 12th collaboration between Stiles and Rick Case on dealership projects. Caymus for a Cause The law firm of Katz Barron Squitero Faust teamed up with South Florida Business & Wealth and Wine Watch for Caymus for a Cause a VIP Wine Tasting event benefitting Jack & Jill Michael Sprague Rick Case Nick Verna Rita Case Terry Mahoney Mauricio Camargo Michelle Maiorello Greg Elordi 70 December 2014 BUSINESS SCENE Entrepreneurs they just don t get no respect By Kevin Gale It s too bad we don t appreciate entrepreneurs as much as we appreciate sports says Jim Clifton the President and CEO of Gallup. The nation s motto could be no running back left behind Clifton joked during the Greater Fort Lauderdale Alliance Annual meeting at the Signature Grand. Clifton who is the author of The Coming Job Wars and Entrepreneurial StrengthsFinder talked about how entrepreneurs often overcome skeptical rejection of their ideas. Ted Turner had what many thought was a ridiculous idea for a 24 7 news channel on CNN said Clifton who has done consulting work for CNN. Raising buffalo That may have been the worst idea of all said Clifton. Of course Turner now has a 55 000 head herd that supplies his 44 Ted s Montana Grills. He also got a laugh from the audience when he joked What if someone would have given Wayne Huizenga a good idea Clifton estimated that there are 500 kids in Broward County who could build a business without limits so it s a matter of finding a way to encourage them. The Alliance meeting was upbeat with a report that said the public private partnership for economic development had attracted 21 new company relocations and expansions during its 2013-14 fiscal year. This means more than 1 400 new valueadded jobs more than 5 000 retained jobs and more than 267 million in new capital investment. Newly announced were SeaLand a worldwide shipping company headquartered in Denmark which has a 13 000-square-foot corporate headquarters for the Americas in Miramar with 65 new jobs at more than 200 percent of the county average wage. Kellstrom Defense Aerospace a MEREX Group company has relocated its South Florida operations to 90 000 square feet in Miramar adding 20 new jobs retaining 106 existing jobs and making a capital investment of 5.9 million. Valley Forge Fabrics a manufacturer and distributor of high end fabrics and textiles is retaining 120 Pompano Beach Jim Clifton is known for writing about entrepreneurs employees and expanding to a newly remodeled 75 000-squarefoot facility in Fort Lauderdale where it will create 40 new fulltime jobs and invest 2.9 million. The evening s top award went to Colin Brown President and CEO of JM Family Enterprises who received the Ray Ferrero Jr. Economic Development Leadership Award. December 2014 71 HOSPITALITY Condo Hotels 2.0 BY LESLIE KRAFT BURKE Condo hotels are back after major issues during the recession What would a South Florida real estate recovery be without the return of the condo hotel We might never know because they re back in spectacular style with The Conrad Fort Lauderdale Beach Residences leading the pack in Broward County. The ocean front property which is the former Trump International Hotel & Tower is in the process of a 34 million redesign by developers Orchestra Hotels Resorts who purchased it last December. The project stalled during the recession and Donald Trump withdrew his name from it in 2009. Originally designed by world-renowned architect Michael Graves the property now is being rebranded as Conrad s first beach resort in the United States says Orchestra CEO Andreas Ioannou and will open in summer 2015. What we are offering in Fort Lauderdale Beach is a spectacular value as the Miami market is becoming almost cost prohibitive. Miami Beach is twice as expensive as we are for comparable units at 2 000 per square foot Ioannou says. We will have world class residences and amenities in an unparalleled beach location. Comparable condo hotel projects in Miami Beach are Ian Shrager s Editon which will have the Marriott International flag Faena House and 1Hotel & Homes South Beach. Broward has the W Fort Lauderdale Hotel & Residences and Beachwalk Resort Condos in Hallandale Beach. With all the condo hotel projects we have underway now in South Florida we have to wonder whether enough buyers will show up says Jack McCabe of real estate analysis firm McCabe Research & Consulting who famously first called the last local real estate bubble. Developers We will have world class residences and amenities in an unparalleled beach location. always say sales are strong but there is really no way to quantify it until these buildings are finished. About two to three months after they receive their certificates of occupancy we will be able to see how successful they really are. McCabe notes that the history of condo hotels here is questionable. Nearly every one has been a failure he says. They don t seem to get the rental rates of hotels and the revenue generated via rentals is a fraction of the units costs for maintenance insurance and taxes. Ioannou disagrees. Whether a condo hotel is successful depends on the company behind it he says. Hotels are doing exceptionally well and we see the condo hotel as being the best model to leverage that. The Conrad Fort Lauderdale Beach Residences has stunning new design features by architectural firm Garcia Stromberg in collaboration with interior design firm Edge of Architecture. Upgrades include a porte-cochere entrance with 24-hour valet service a striking new lobby and a dramatic glass-encased area Jewel Box which will be available for events 72 December 2014 and connect the property s East and West towers two stories above ground level. It will offer 290-condominium hotel residences that owners have the option of renting out as hotel rooms via Conrad for as much as four months of the year. Studios one- two- three- bedroom units and penthouses are available with a starting price of 500 000. All are fully furnished and appointed with spacious private balconies private owner s storage closets and marble entry foyers as well as exquisitely finished kitchens with top-of-the line appliances including Sub Zero refrigerators and Wolfe cooktops. Spa-like bathrooms will boast marble vanity tops separate shower and baths. Real estate brokerage company Douglas Elliman is the exclusive sales and marketing team for the 24-story project. Certainly Orchestra appears well prepared to take on the challenge of launching the property. The company successfully developed the Hilton Fort Lauderdale Beach Resort. Founded in 2013 the company s strategy is to acquire properties in strategic locations that will complement its portfolio. Its market is sophisticated global travelers. For the Conrad Ioannou expects to attract those from the Northeast corridor and the Midwest in the U.S. along with Europeans and South Americans. It will be difficult to lure Latin Americans away from Miami they see it as being their New York McCabe says. He also questions whether Conrad unit owners will be able to realize value if they are only able to rent out their units four months of the year. Usually condo hotels allow rental of units between nine and 10 months of the year he says. This would only allow half that amount. Ioannou says the four-month rental period is based on research Orchestra has done and its experience with the Hilton Fort Lauderdale Beach Resort. Those who buy have to really enjoy the lifestyle of living with hotel amenities he adds. If it works as a second home and appreciates in value that s great. The Conrad Fort Lauderdale Beach Residences portecochere Inset The Conrad Fort Lauderdale Beach Residences restaurant interior December 2014 73 RESIDENTIAL REAL ESTATE Auberge on the beach BY KEVIN GALE Long-awaited Ireland s Inn redevelopment gets a top-shelf brand as manager The Auberge Beach Residences and Spa will have a resort-like ambiance on a 4.6-acre site that used to be home to Ireland s Inn Jorge P rez is making good on his proclamation in SFBW s first cover story that he was ready to launch sales at the former Ireland s Inn property in Fort Lauderdale. Auberge Resorts Collections known for properties such as Calistoga Ranch in Napa Valley and Hotel Jerome in Aspen will manage a new 171-unit beachfront condominium property on the Ireland s site for P rez s Related Group Fortune International and Fairwinds LLC. The project is expected to break ground in 2015 and open in 2017. The 1 500- to 5 000-square-foot units will go for an average of 1 000 a square foot which is cheap by South Beach standards but near the top of the market in Fort Lauderdale. The average unit will be 2 800 square feet plus 1 500 square feet of terraces said Carlos Rosso president of Related s condominium division. Besides introducing the Auberge brand in South Florida the 4.6-acre site is notable for being right on the sand while other new projects along State Road A1A including Paramount and The Conrad are on the west side of the highway. It s also Auberge s first project without a hotel component. The Auberge Beach Residences and Spa in Fort Lauderdale will be like a self-contained resort with its ground level spa and two public restaurants one on the ocean and one on State Road A1A. The signature restaurant will have an American bistro concept with a raw bar and the extensive wine list that is an Auberge trademark. Auberge will serve its extensive wine list with ocean views Seeking differentiation P rez said at the project s unveiling that he wanted a different brand for Related and his partners in Fort Lauderdale to compete with other projects in Miami Beach and Sunny Isles. He promised that it will by far be the most luxurious project in Broward County. P rez whose name is on Miami s new art museum said two full-time art curators will work with New York-based interior design firm Meyer Davis to select the art collection for the project. Architectural firm Nichols Brosch Wurst Wolf & Associates will depart from the SoBe contemporary designs it is known for to do something that is more soft and organic but still sophisticated and luxurious according to the project s press release. Fortune President Edgardo DeFortuna said some highend buyers like the scene in South Beach but others want a more tranquil environment. He noted that P rez often spends weekends at his penthouse on Hollywood s beach. Will Latin buyers come 76 December 2014 RESIDENTIAL REAL ESTATE Neighbors who supported redevelopment will get rewarded with new public spaces along the ocean One question is how successful the developers will be in attracting Latin American buyers to Fort Lauderdale given their essential role in Miami-Dade s condo boom. P rez talked about how the Hollywood Hallandale area has been marketed as an extension of the Miami market and DeFortuna predicted that initial Latin America buyers in Fort Lauderdale will be followed by others. P rez said he also expects a higher percentage of northeastern buyers compared with his projects further south. The growing number of projects on or near Fort Lauderdale s beach which also include Riva Privage and multiple projects by Ocean Land Development are also attracting empty nest buyers from western Broward cities such as Weston. Adding to the boom is a 1 billion residential and mixed-use project being planned next to The Galleria Mall on Sunrise Boulevard which is just west of the Intracoastal Waterway. Paramount and the Ritz Carlton Residences are among the projects pushing the 1 000 mark in Fort Lauderdale while The Palms built in 2001 just south of Ireland s Inn recently had units listed from 365 to 1 264 a square foot the latter being a fully furnished penthouse with 20-foot ceilings in the main living area. Rosso said the Auberge project will have half the number of units typically found on a site of its size. The Ireland family with patriarch Jack Ireland played a key role in making sure the property was harmonious with the single-family neighborhood to the north. Many local residents backed their redevelopment efforts when preservationists unsuccessfully tried to argue that the original hotel building should be preserved as an example of Mid Century Modern (MiMo) architecture. In reality though many much more architecturally significant MiMo projects had already been torn down on Fort Lauderdale s beach and the hotel s ground floor had an outdated layout. Damage from Hurricane Wilma dealt a serious blow to the hotel business which was spread across multiple buildings. The new project will be 12 feet above sea level and benefit from a 125-foot-deep beach renourishment project that will run for a quarter mile said Fairwinds President and CEO Andy Mitchell the husband of VP Executive Kathy Ireland Mitchell. The Ireland s Inn restaurant was a popular spot with locals and Andy Mitchell indicated that wouldn t change. Auberge is the perfect brand he says since it will be world class but not pretentious. December 2014 77 COMMERCIAL REAL ESTATE Office building buying boom lacks pre-recession frothiness BY DARCIE LUNSFORD Solid foundation South Florida s hottest office towers are attracting suitors faster than debutantes at a country club. CityPlace Tower Courvoisier Centre 350 and 450 East Las Olas Boulevard and Douglas Entrance are just a few of the landmark office sales leading the region into a office buying boom similar to the one we saw in the mid-2000s. Fortunately this go round is sans the looseygoosey financing gimmicks thus far and underwriting while aggressive for the highest-grade assets seems to be more prudent. All four trophy towers sold recently with one of them CityPlace Tower arguably setting a new record price per square foot for what investors will plunk down to own a major office building in South Florida. In August an affiliate of W.R. Berkley Corp. paid 150 million or 507 per square foot for the 296 000-square-foot tower on Okeechobee Boulevard in the heart of West Palm Beach. That s about 20 percent more than seller KBS Real Estate Investment Trust paid for it three years ago. That deal is the exclamation point on a year in which investor appetite has come roaring back for office assets. In the first three quarters of this year alone sales of office properties topped 2.3 billion which is more than full-year volumes for every year since 2007. Of course the verdict remains out on whether 2014 will actually be the year that sales volume in South Florida punches through staggering prerecession levels that neared 4 billion. But the fourth quarter continues to ring up big dollar trades. It doesn t surprise me that we are at the point that Christian Lee says it s time to sell we are. Miami has led Florida out of the recession said Mark Vitner senior economist for real estate for Wells Fargo. I think that we will absolutely punch through pre-recession numbers. Vitner said South Florida benefits from a tremendous influx of international capital and there is no sign that foreign buyers hunger will ebb in the near term. I think it has a lot more legs to it he said. South Florida is also becoming a hotspot for domestic institutional funds finding themselves priced out of tier one markets such as New York Boston San Francisco and Washington D.C. according to Ben Carlos Thypin director of market analysis for research firm Real Capital Analytics in New York. This new institutional focus is pushing more capital into secondary markets such as South Florida Seattle and Denver he said. While Thypin stopped short of minimizing the frenzied investment atmosphere whipping up every time a prime building hits the market he is less moved by the numbers. In the third quarter according to Real Capital Analytics data the average price paid per square foot for all office assets that sold was 209. The last time the average price per square even pierced the 200 mark was in June 2010 data showed. But that was likely a reflection of the types of assets hitting the market at that time not the overall volume. Now compare that to 2006-2008 - and even into 2009 when average prices were consecutively above 210 a square foot. It is getting frothy but not to where it was Thypin said. The mounting momentum however is likely to be 78 December 2014 COMMERCIAL REAL ESTATE COMMERCIAL REAL ESTATE HED Office sales bounce back 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTD SOURCE REAL CAPITAL ANALYTICS After plummeting in 2009 sales of South Florida office assets are soaring 3 240 692 681 3 820 972 295 3 922 911 581 2 104 727 462 466 092 710 1 292 914 302 1 829 832 440 1 248 053 049 1 716 524 887 2 367 973 812 ( FIRST THREE QUARTERS) One Boca Place bolstered by the place we are in the lending cycle with loans for assets bought during the last boom maturing and a broader psychology sweeping across the market that it is finally time to sell. There is a tremendous pent up demand for people wanting to sell their office buildings said Christian Lee vice chairman of CBRE in Miami. It is time to sell them and people are selling. Even though much of the buying attention this year has been focused on larger Class A assets priced at 30 million and up the adoration for office has begun to spill over into smaller non-institutional assets according to Douglas K. Mandel first vice president of Marcus & Millichap. This year s transaction volume he said is up 30 percent over last year. And investor interest is strong with many of the well-located smaller buildings trading above asking price. It is hard to get deals so you have to get very aggressive Mandel said. Mandel points to his recent sale of a Chase Bank-anchored office building at 1801 Alton Road in Miami Beach. The 20 000-square-foot property received almost three-dozen offers. It sold for 8 million which was 800 000 over the listing price and the buyer agreed to put up hard deposit money at contract. 2014 Top Trophy Trades CityPlace Office Tower West Palm Beach 150 million Courvoisier Centre Miami 145.8 million Airport Corporate Center Miami 132.3 million 350 and 450 East Las Olas Boulevard Fort Lauderdale 204 million Royal Palm at Southpointe complex Plantation 128 million Douglas Entrance Complex Coral Gables 100.75 million BAC Colonnade Tower Coral Gables 81 million One Boca Place Boca Raton 76.3 million Esperante West Palm Beach 71.2 million 200 East Broward Blvd. Fort Lauderdale 66.4 million I think this [sales] run has got three to four years to it CBRE s Lee said. It will be close to what we saw in 2006. Freelance writer Darcie Lunsford is a former real estate editor of the South Florida Business Journal. She is senior vice president for leasing at Butters Group and is avoiding a conflict of interest in her column by not covering her own deals. December 2014 79 TECH HUB The Internet of Things is coming BY CHRIS FLECK You heard it here The next big thing in tech is going to be really big. The Internet of Things (IoT) is projected to have more than a 7 trillion (yes that s a t ) market by 2020 with 26 billion connected devices. These devices are more often called Things because most of them are not PCs or smartphones rather they are sensors cameras PLCs thermostats switches - and the list goes on. What these new things have in common is they connect via a network and add some level of function or intelligence over disconnected devices. Driving their growth is low cost processors and pervasive wireless that makes building smart Things and connecting Things easier than ever. This opens an unlimited number Chris Fleck of new applications and opportunities to improve industries like manufacturing healthcare consumer and any organizations efficiency. Recently the South Florida Technology Alliance held an event in Boca Raton focused on IoT and the opportunities this growing market will bring. Monty Blight vice president of product development for Peak 10 moderated the panel of local experts who are riding the wave of IoT that included Dave Duggal Founder Managing Director of EnterpriseWeb and a representative of the Industrial Internet Consortium. David Jaramillo PhD Manager of Mobility Innovations CIO Labs IBM Mike Kopczynski IOE IOT Product Solutions Specialist for Cisco Bill Lintz Vice President of Global Sales for ILS Technology Manolo Morales Business Development Leader IoT Solutions Zebra Technologies At the event Duggal described the importance of having standards to be sure all the Things can communicate and devices can work across vendors and networks. He participates in the Industrial Internet Consortium to help encourage this effort. Kopczynski noted that it takes an ecosystem to build out the IoT and even though Cisco is a recognized leader in IoT the company needs partners to build out all of the solutions well beyond the infrastructure required to implement IoT. Jaramillo from IBM showed his Raspberry Pie device which costs only 35 is more powerful than early PCs and can be programmed to provide an unlimited number of IoT tasks. Lintz of Boca Raton based ILS Technology talked about applications his company is enabling at businesses that range from the Honda Auto Factory in Ohio to dairy farmers in South Korea. He said that much of the money from IoT will initially be earmarked for hardware devices and infrastructure but as they get deployed more software opportunities will develop. Morales from Zebra Technologies described the company s SaaS platform that connects devices like barcodes asset tags and sensors. Some of the attendees at the event also indicated the investment in IoT is positively impacting local companies. has invested in local startup Zendo which is working on home monitoring and automation. And Magic Leap in Hollywood just received a whopping 542 million from Google Qualcomm and Kleiner Perkins to build some yet to be disclosed wearable headgear for virtual reality. Chris Fleck is on the board of the South Florida Technology Alliance and vice president of mobility systems and alliances for Citrix Systems (NASDAQ CTXS) a Fort Lauderdale company that provides secure remote access to data and applications. 80 December 2014 LAW When to hire outside general counsel Q&A As businesses meet the challenge of paying for legal services many wonder whether they should hire an in-house attorney or an attorney working within a law firm to serve as their general counsel. While the decision is largely a financial one it s important to make sure that all of the relevant factors are being covered in the equation being evaluated says Matthew Zifrony a director of law firm Tripp Scott. Zifrony serves as outside general counsel to several companies and provides strategic counsel for corporate contractual and transactional issues. South Florida Business & Wealth recently spoke with Zifrony about what factors should be considered in the evaluation. SFBW When do companies usually find themselves in the position of having to make this decision Zifrony When the cost of hiring an attorney in-house is less than what their legal bills would be if they continue to work with outside legal counsel. Often companies find that they have to make trade-offs if they hire a general counsel in-house. Are they able to find an experienced attorney that they have to pay top dollar for or do they pay less money for an attorney who may not have enough experience to deal with the legal issues of the company SFBW If they hire an in-house general counsel will they likely have to use outside counsel as well Zifrony It is very likely that they will. When companies hire in-house attorneys they are limited to the knowledge and expertise of that one attorney. Often legal concerns and issues exceed the specific expertise of that one attorney. When they hire outside general counsel they have the benefit of working through one attorney who has access to other specific expertise of the firm the attorney is affiliated with. In addition a lot of legal issues that companies face require bringing in expertise from other geographic locations. For instance if a lawsuit is brought against the company in another state then a litigator from that state would likely have to be retained. An outside general counsel can use their firm s connections to get the right people involved. In this instance the in-house attorney would be hiring that outsourced help anyway. SFBW How else does outside general counsel bring value to a company Zifrony Many companies hire attorneys only when they have legal matters. The result is that they work with disparate attorneys who only know about the one matter they are handling. Working with an outside general counsel the company can leverage the benefit of having someone who has knowledge of all of its legal issues their history and context. This allows the company to be best served by legal expertise. SFBW How does a company find the right outside general counsel Zifrony The attorney should be someone the company is comfortable with likely someone who has worked Matthew Zifrony with them and knows the company and its issues well. Often this situation evolves naturally in the course of doing business as the work that the attorney serving the company does grows over time. SFBW Are there certain types of companies that benefit most from having outside general counsel as opposed to an in-house attorney Zifrony Yes. Small to mid-size companies are ideal candidates for having outside general counsel since it allows them to consolidate their legal work in a cost effective manner. Large companies not so much. Larger companies often elect to have their inhouse general counsel serve as more of a manager officer or figurehead rather than someone that performs the actual legal work. Matthew Zifrony can be reached at 954.525.7500 or mzz 82 December 2014 December 2014 83 BEHIND THE MIC Mentoring motivation and moving markets BY JIM FRIED Larry Zinn is a rare breed and not just because he s a successful third-generation entrepreneur. He runs the Warren Henry family of auto dealerships and wins lots of awards for customer and workplace satisfaction. Why He says it s his family approach which involves mentoring and motivating at Larry Zinn the highest levels. Larry can take people with no automotive industry experience and make them into a top sales talent. Those with just a high school education can earn six figures if they become part of the Warren Henry family. Larry s father Warren and grandfather Dave must be extremely happy with the Jean-Louis Gunchard way that he has continued to grow their brand and implement their familyoriented philosophies. One of Larry s best stories is how Dave Zinn asked one of his employees if he should acquire a Toyota dealership. The employee advised Dave to buy into the Toyota situation. I met that gentleman s grandson he was working as a summer intern for Larry. Jean-Louis Guinchard is the senior managing principal at Silver Portal Capital LLC in San Diego and is passionate about raising capital for real estate transactions in the public markets. Jean-Louis is building a real estate crowdfunding site which he describes as part of the trend of increased focus on crowdfunding in the marketplace. He envisions a day when people buy commercial real estate on the Internet much the same way they choose other investment products today. Jean-Louis also works with Inland Real Estate to market a new way to invest in real estate the Delaware Statutory Trust. This allows direct investing in cash-flowing real estate that qualifies for 1031 like kind exchange treatment. He was recently in South Florida to meet with a number of real estate operators to help them raise institutional capital to fund their business operations. Many family-owned real estate operating companies are taking advantage of the public markets to monetize their companies as the real estate cycle matures. In business it s important to have an edge one of our recent guests Dr. Carlos Wolf of Miami Plastic Surgery sees a lot of that. Interestingly after 26 years of practice here he s noticed a growing number of men getting facelifts eye treatments Botox etc. It could be the older guy who is concerned about competition from younger colleagues. It could be the older guy who marries a younger woman or someone who doesn t want to look like a grandfather to his younger children. In any case Wolf said the key is to maintain perspective and balance. If you opt for invasive treatment you want to look refreshed not freakish. Do not go overboard. Keep it natural. Of course this also applies to women as well. It is also important to research the doctor. Ask around check the web and talk to former patients. You can hear each of these interviews and many others on my website at 84 December 2014 Have you made your mark on South Florida South Florida Business & Wealth Wants to Know - C A L L F O R N O M I N AT I O N S You re a tHinKer doer mover and SHaKer. You are giving back making things happen and standing out from the pack. South Florida Business & Wealth has created the Up & Comer Awards signature event to honor South Florida superstars and their accomplishments. If you are (or know someone who is) 39 years or younger apply or nominate them today at up. preSenting SponSor to learn more about the up & Comer awards or to submit a nomination please visit up December 2014 85 WEALTH WEALTH Old rules can bite BY KEVIN GALE Estate planning Some people might think they are wealthy but law professor Samuel A. Donaldson has a way of setting them straight. The so-called fiscal cliff legislation has changed the world of estate planning with its 5.34 million exclusion before the estate gift tax kicks in. People with 4 million in assets might have been craved as estate planning clients before the change but now they are just poor folks when it comes to estate taxes says Donaldson. They are so cute. They think they are rich. They come in with their 4 million dollars and say Haven t we done good. Yeah you are a loss leader Donaldson said during a presentation to an audience filled with wealth managers and attorneys. Donaldson a professor at the Georgia State University College of Law spoke on Oct. 28 as part of the 13th Annual Joint Tax & Estate Planning Seminar at Nova Southeastern University. The event was presented by United Way the Community Foundation of Broward and the Jewish Community Foundation of the Jewish Federation. The event attracted the who s who in the estate and tax planning fields with about 650 attendees. Donaldson drew another laugh when he talked about a 35 percent tax bracket that only spans a range of 405 100 to 406 750 for an unmarried filer. That s Angelina Jolie good God get a meal thin he said. What matters most in estate planning these days are income tax rates and the 3.8 percent tax on net investment income for single filers with taxable income of 200 000 to 250 00 for joint filers. Donaldson gave two examples of how strategies have changed. One involves the so-called kiddie tax. There s a long-standing rule that if you have a minor child with unearned income the child who files will be taxed at a parent s rate. Congress sniffed out that you are putting investment assets in the name of your four year old to get a lower rate Donaldson said. As a result parents frequently just put their children s unearned income on their own tax return to avoid the cost of preparing an additional return. Now the cost of the 3.8 percent surcharge may make it a better option to actually file a return for the children despite the additional fee to the tax preparer. A popular strategy in the past has been deferred payment sales instead of an outright gift so the giver would not have to pay gift taxes and defer capital gains. People who did a sale three to four years ago might want to forgive the balance due under the note now because the gift isn t high enough to trigger the gift tax. The Catch 22 though is that long-existing income tax laws pretend you are fully paid even if you forgive payments he says. That could create a tax liability. As Donaldson says There are some old rules that can come and bite you. December 2014 87 WEALTH That s a wrap BY KEVIN GALE Tucking a hedge fund inside an insurance product cuts taxes boosts compound growth Doug Von Allmen with Thalius Hecksher Panelists Deidre Fortune and Scott MacLeod Michael O Donnell with Patricia Notarianni Investors who employ hedge funds may cringe at the resulting tax bills each year but there is an increasingly popular twist to deal with that. The solution called Insurance Dedicated Funds and Structures (IDFS) were outlined at a Hedge Fund Association seminar that coincided with the Fort Lauderdale International Boat Show. The seminar organized by Thalius Hecksher of Apex Fund Services was held at the Hilton Fort Lauderdale Marina and then guests celebrated on Lady Linda a 187-foot Trinity yacht that investor Douglas Von Allmen is listing at 43.9 million. The basic concept of an IDFS is fairly simple Invest in a hedge fund via an insurance product that allows deferral of taxes and the returns to grow on a compounded basis. It sounds exotic but when you break it down ... there s not a lot of magic to it said panelist Scott R. MacLeod a shareholder at Greenberg Traurig. Panelist Chris Calise president of Crown Global has a private equities background and was a pioneer in the hedge fund inside an insurance wrapper concept. He and a partner spent two months researching and figuring out the concept but they couldn t get insurance companies interested so they ended up setting up their own insurance company in Bermuda in 1998. Crown Global s Private Placement Life Insurance (PPLI) allows clients to invest in a wide array of alternative assets including hedge funds private equity and venture capital. PPLI s offer tax efficiency estate planning liquidity flexibility and high capacity limits the company s website says. The concept started out for billionaires initially since it was difficult and cumbersome but has now moved downstream as the cost of initiating the strategy has dropped Calise says. It s not exactly Main Street because Calise says Crown doesn t do under a 3 million premium perhaps 1 million for an annuity. The feeder fund concept of banks sending 100 000 from 20 clients doesn t really work for this model said Robert Beauchamp Senior Sales VP for Zurich Global Life North America s Affluent Markets Group who said Zurich s minimums mirror Crown s. Beauchamp said his clients are all 5 million and up accredited investor and usually allocating 1 million or more. Beauchamp said the cost is much lower than the fees associated with doing an annuity. The price of tax free is more than the price of tax deferral he said. Panelist Deidre Fortune a tax partner with KPMG said high tax rates have investors looking for alternatives like the dedicated funds which lessen the reporting requirements compare with investing directly in a hedge fund. The diversifi cation rules are fairly lenient starting with no more than 55 percent of total assets in one investment. An independent advisor makes the decisions on investment in the fund so there s an arm s length distance from the investor. The product has been around for a long time and has been tested through the IRS and court system Fortune said. The structure products have allure for wealth managers Beauchamp said. Clients or investors who turned down an investment because of tax inefficiency can be interested in IDFS. You come up with new money you didn t already have Beauchamp says. After entering an IDFS investors can move the premium to a different manager if they are unhappy with the performance but Calise said he doesn t see that happen very often. There is something psychological buying these products it s long term to the client Beauchamp said. IDFS can be used to transfer wealth to the next generation or to charities. Calise added that IDFs are typically owned via a trust. 88 December 2014 yeAr-eNd cLeArANce Volkswagen Hyundai Equus Acura Fiat Alfa Romeo Honda Cars & Cycles Our LOweSt PAyMeNt PrIce ANd A MONey-BAck GuArANtee If you are not completely satisfied return the vehicle within 3 days or 300 miles. SALe ON 441 at Sunrise dOuBLe the NAtIONwIde FActOry POwertrAIN wArrANty uP tO 20 yeArS 200 000 MILeS with every New Hyundai Equus Acura Volkswagen FIAT or Honda Car Purchased. dIScOuNt GAS ANd Free cAr wASheS ANytIMe with Rick Case Rewards - You Can Save 100s Even 1 000s. Early Lease Return or Exchange Program - no matter how much you owe even if over mileage. SOuth FLOrIdA S FActOry AuthOrIzed LeASe returN ceNter ONLy rIck cASe GIVeS yOu FrOM the dAy yOu Buy It 10 yeAr 100 000 MILe NAtIONwIde POwertrAIN wArrANty with 10 yeAr 24-hOur NAtIONwIde rOAdSIde ASSIStANce Toyota Nissan Ford Chevrolet Honda Hyundai Volkswagen Mazda Acura KIA Dodge Chrysler Jeep Lexus Infiniti Audi MINI Volvo Buick Cadillac Subaru FIAT On eight years old and Newer vehicles with less than 80 000 Miles. Excludes Factory Certified Pre-Owned vehicles. ON ALL theSe uSed cArS HONDA Cars HYUNDAI EQUUS I-75 Auto Mall I-75 & Griffin ACURA HYUNDAI EQUUS ON 441 at Sunrise 866-757-4644 Makes it Easy Since 1962 I-75 & Griffin 866-757-5568 866-895-5702 866-899-1817 VOLKSWAGEN I-75 Auto Mall HONDA Cycles FIAT ALFA ROMEO I-75 Auto Mall 866-812-6572 866-910-1420 888-603-9657 December 2014 89 INSIDE THE INCUBATOR The U.S. is shifting permanently away from mass employment to the individual economy. The Alterative to the Incubator BY LESLIE KRAFT BURKE Rokk3r Labs co-builds companies with entrepreneurs If you have an out-of-the-box idea that can transform the industry you work in Rokk3r Labs is interested in hearing it even if it s just one sentence so far. The Miami Beach-based firm which has grown from 5 to 85 employees within the last two and a half years is a platform through which entrepreneurs can partner with a team of strategists who bring an idea through the stages of research strategy design financing and launch. The team of cloud technology execution and modern day marketing specialists launched eight companies this year for a total of 21 since Rokk3r s inception. Their process is called cobuilding. Co-building comprises several key stages according to Rokk3r CEO and co-founder Nabyl Charania who runs the company with co-founder Germ n Montoya Sourcing proven entrepreneurs who understand how to build businesses. Validating the ideas they have via Rokk3r s Think Phase where product market fit technology roadmap funding structure and the go-to-market strategy are defined. Next ideas go into an execution phase where the entrepreneur partners with strategists creatives and engineers at Rokk3r Labs to transform them into companies. This involves execution of a business roadmap user experience and interaction product and platform design technology build and the go-to-market strategy. Launching companies to market with proper support to ensure growth and traction. Continuing to support portfolio companies within the Rokk3r Labs co-building ecosystem where expert resources in marketing HR future investment partnership and business development opportunities are available. Launching a company can be achieved with the co-building methodology within four to six months Charania says. To compensate Rokk3r for its part in bringing the company to initial success the company takes an equity position in the new enterprise of between 7 and 25 percent depending on where it enters the stage of development. The key questions we ask when we are vetting ideas are Can we transform an industry Can we break into a new niche in an industry says Charania who added that Rokk3r now has operations in Colombia New York Tornoto and London. We deal with seasoned entrepreneurs who have a eureka moment. And if we are interested we go down the road with them. 90 December 2014 Germ n Montoya Nabyl Charania December 2014 91 INSIDE THE INCUBATOR Rokk3r Labs company list COMPANY ENTREPRENEUR DESCRIPTION WEBSITE AdMobilize Rodolfo Saccoman AdMobilize is a big data internet of things company merging the physical world to the smart grid with real-time intelligence. BoatYard Nathan Heber Boatyard helps owners fall in love with their boats (again). Boat owners can now request maintenance fuel repairs or just about anything else they need on-demand from the Boatyard app. Fitting Room Social Brad Liff Fitting Room Social is an social shopping application that helps women find clothing that fits. Foster Christopher Martin Foster is a location based app that allows you to connect with your friends form groups based on mutual interests and create real time events GADA T.J. Sabo GADA secure pay is a mobile app that allows users to quickly create checks from their personal devices allowing instant payments to anyone anywhere using only their name. Good World Games Greg Sukornyk Good World Games is a mobile gaming series that allows people to make a positive impact in the real world when they play games in the virtual world. Learner Nation Michael McCord Learner Nation is a cloud-based SAAS learning platform featuring patent-pending technology that enables anyone anywhere to instantly deploy learning training and performance management initiatives. LiveNinja is a video consulting platform providing a convenient way to browse buy and sell knowledge through live video. Katana s mission is to make doing business online feel human by delivering on-demand friendly customer service via instant video chat directly on clients sites. Map Your Startup is the destination for people to become aware of the nearby entrepreneurial resources. Users can register and view companies meet-ups associations and more from the startup ecosystem. Live Ninja (Katana) Will Weinraub Map Your Startup Norberto Tito Gil LocalMaven Sean O Day Arnon Rosan LocalMaven is a social referral network that empowers businesses rewards influencers (Mavens) for their recommendations and gives customers access to great deals. S3nse R3L S3NSE provides consultation for real-time data analysis and visualization. By integrating back-end applications emerging platforms and services with the R3L Platform and API services S3NSE delivers sophisticated and actionable dashboards and widgets. Songgo Ben Wolkov Know my music know me. Songgo is a social platform where users create a playlist for their lives. By matching a song with a moment a place and a time users create memorable songgos. Timeliner Richard Bronson Timeliner is a mobile app that allows a user to place posts in their exact chronological location on one s Facebook timeline even prior to a user joining the site. Voike is the first social media platform to allow users (aka Voikers) to voice their emotions privately and or publically with friends family or the rest of the world through simple tailored voice messaging. VoikeShop is a mobile platform that enables users to download music no matter what type of phone or data plan they use. Public Reputation allows consumers to leave reviews for businesses they ve visited and allows businesses to view and manage their online reputation by becoming a verified business and having the PR product triage any customer issues. http about Voike & Voike Shop Jaime Jaramillo Public Reputation Benny Aboud http 92 December 2014 United Way of Broward County is our United Way future of our community. By contributing to United Way we feel secure in knowing our gift is helping our neighbors in need. W. Scott Parker Tocqueville Society Chair Last year United Way of Broward County Tocqueville Society members contributed more than 2 million dollars to address the profound challenges in our community. Please join us in continuing to impact the lives of those in need. For more information visit or contact us at 954.453.3754 December 2014 93 SALES STRATEGIES Following these three final steps will help find the right sales people to fit your organization BY GRETA SCHULZ Crucial Steps Last month s column talked about the first two steps in hiring a sales person Identifying what an ideal candidate looks like for your organization and searching for the candidate. This month s column will look at the final three steps pre-qualifying the candidate assessing the candidate for your organization and in-person interviewing Pre-qualifying the candidate This should be done on the phone and should take no more then 10 minutes. You should have questions ready to ask the candidate (the same questions you ask for all candidates) and they should be asked quickly and succinctly as to not allow them too much time to think. Their initial response is the best one because it comes from the gut. If too much time is allowed the candidate will be too concerned to answer the correct way. Once you have completed these few minutes on the phone you will have a gut feeling that they either are or they are not pre-qualified to go to the next stage in the hiring process. Assessing the candidate At this stage in the process the candidate has met your initial criteria and should be asked to take an assessment. You can use the assessment of your choice. (Assessments are one of the services I offer at Schulz Business.) An assessment should help you with the following factors Keep within the EEOC Guidelines for Hiring Your process should have no adverse impact on any protected minorities such as women non-Caucasians people over 40 years of age and handicapped persons. You should compile a pool of candidates to choose from rather than just one or two people. You should also have more than one interviewer involved to keep the interview process objective. Using a pre-employment test to assure objectivity The test or tests must be reliable (you can depend upon the results to be accurate) and consistent in their findings while showing no adverse impact on the protected minorities. The EEOC guidelines further suggest that if you use a test the same test must be administered to all of the applicants. The test you choose should be both EEOC compliant and validated. Assess the candidate using some sort of benchmark I m not saying to use your best salesperson as your benchmark This mistake is very often made in organizations. Just because someone is doing well doesn t mean that all of their characteristics are duplicable nor should they be duplicated. You may have a top performer who has the ability to always hit his numbers but this may be happening because of strong relationships built. Though that is important it isn t necessarily what you want or need in a new hire that needs to go out and hit the pavement. Whatever assessment or pre-employment test you use please be clear about that detail. Uncovering weaknesses that are hidden and can t be picked up in the regular interview process Some examples of these hidden weaknesses are the ability (or inability) to discuss money having an overwhelming need to be liked and the ability to recover after a feeling of rejection just to name a few. Interviewing in person At this point in the hiring process you should be able to concentrate on things like eye contact hand shake personality bonding ability and the candidates ability to ask you questions not just letting you do all of the talking. You should also have a battery of questions that you are going to ask here dependent upon the outcome of the assessment. It would be helpful if you had some questions to ask regarding the weaknesses that were exposed in the assessment to see how you feel about their problems with these issues. As a reader of SFBW if you send me an email requesting an assessment I will arrange for one complimentary assessment. I would recommend assessing your best salesperson. Greta Schulz is president of Schulz Business and Contact her at greta schulzbusiness. com or 561.745.8892. 94 December 2014 HISTORY VIEWPOINT Back to the future PHOTO VERNE WILLIAMS COURTESY OF HISTORYMIAMI With traffic congestion at an all-time high work commutes taking longer and parking becoming more expensive public transportation is a hot topic in South Florida. But it wasn t always this difficult to get around. Here a streetcar makes the turn at Northeast First Avenue onto Flagler Street in the heart of downtown Miami circa 1935. Trolley tracks in many cities nationally were pulled up in the mid-1900s. Now the Wave Streetcar is being planned in Fort Lauderdale and a trolley route from downtown Miami to Midtown is also being envisioned. Information for this feature is courtesy of the HistoryMiami Archives & Research Center which is open to the public and contains more than 1.1 million images of southeast Florida the entire state and the Caribbean from 1883 to the present. For more information or to visit HistoryMiami please visit (This is Image 1983-008-3 from the collection.) Lexus of Kendall THE ALL NEW 2015 NX STARTING AT 34 450 Introducing We Promise Unmatched personal and professional service. You will get the car you want at a fair price. You will leave with a smile. ELITE OF LEXUS 13 TIME WINNER Lexus of Kendall 10775 S DIXIE HWY. (US1) (888) 841-0402 WWW. LEXUSOFKENDALL .COM Where can we help you next Over three decades of experience advising clients on strategic acquisitions and dispositions and providing landlord representation tenant representation property management and construction management services. We bring you real estate solutions around the block or around the world. 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