Winter 2018 RealEstate Matters In This Issue High Hotels Ltd. Pilots State s First Hospitality Apprenticeships... 1 A Catalyst for Bringing People Together... 2 President s Message... 2 A New Breed of Luxury Apartments... 3 Grand Opening of The Reserve at Greenfield... 3 What It s Worth: Commercial Real Estate Appraisals... 4 High Hotels Ltd. Opens SpringHill Suites in Mt. Laurel, N.J... 6 For our latest thinking on what matters to you in real estate, please visit www.highassociates.com. High Hotels Ltd. Pilots State s First Hospitality Apprenticeships Program earns up to 18 credits from HACC to transform jobs into careers By Kathy Prime, Chief Learning and Talent Development Officer, the High companies One of the big challenges all employers face when unemployment rates go down is, where do you find new workers to replace those who leave due to retirement or attrition? As job markets tighten, innovative employers set themselves apart, and at High Hotels we are doing that by delivering on an employment value proposition of individual and professional growth. The proposition is apprenticeship, traditionally associated with manufacturing. But what if it were applied to hospitality? Working with a team from the Lancaster campus of Harrisburg Area Community College (HACC) led by president Dr. John J. Ski Sygielski, High Hotels is about to explore this innovative approach. Starting in 2018, High will pilot two two-year apprenticeships providing 4,000 hours of on-the-job training that allow co-workers to earn up to 18 college credits. Hotel management will be one track that aims to build the management and operation skills needed to properly lead teams, and a hotel associate program will focus on building hospitality knowledge partnered with guest service. This program is exciting for co-workers who are motivated to think about their jobs from a career and life perspective. Two-year apprenticeships offer High Hotel co-workers economic mobility. This program is exciting for co-workers who are motivated to think about their jobs from a career and life perspective. More than a job and a paycheck, this offers them the potential to move them from one economic status to another. In the bigger picture, that kind of mobility is key to workforce development and to the economic stability of the region. As one of the largest employers in Central Pennsylvania, High is pursuing this theme on many fronts. continued on page 5 High Real Estate Group LLC 1
President s Message High s Chief Learning and Talent Development Officer Kathy Prime and her team are leading the strategic initiative to super-charge High s organization and talent development, making sure we have the right workers to execute our growth initiatives. In this issue, Kathy fills us in on an exciting new approach to strengthening High Hotels workforce. Each of High s select service and extended stay properties requires about 40 co-workers to operate. Across our growing portfolio of 15 hotel properties, this adds up to a significant impact on the local economies in which we do business. Getting alignment between the supply and demand of a skilled workforce is a crucial task, one that s even more critical in a low-unemployment job market. We believe Kathy s unique interpretation of apprenticeship could be a model for the industry. High has long collaborated with local educators, government, and agencies to attract and develop workers. We believe that is part of the role businesses play in improving communities, and certainly supporting and strengthening the economy of where we do business. As the year draws to a close, we re gratified to have been able to work so closely with so many of our valued partners in creating business success. I hope that, as we look to 2018, we ll be able to work with you to help you achieve your own goals. Mark Fitzgerald President and Chief Operating Officer High Real Estate Group LLC 717.293.4446 mfitzgerald@high.net A Catalyst for Bringing People Together The S. Dale High Leadership Center officially opened in Greenfield Corporate Center at 1861 William Penn Way, Lancaster, Pa. on September 28, 2017. Formal remarks followed by a recognize and thank S. Dale High for reception marked the opening more than half a century of outstanding of The S. Dale High Leadership leadership and entrepreneurship of the Center in Greenfield Corporate High companies, as well as his many Center on September 28. Guests contributions to Central Pennsylvania were welcomed to tours of the and the Lancaster community. High Story pictorial company history, the 132-seat auditorium, conference rooms, and refreshments in the enclosed courtyard. A gathering place to engage in vibrant dialogue advancing community interests and strength, the Leadership Center is a tangible and long-lasting way to The Leadership Center is home to The S. Dale High Family Foundation, the High Family s philanthropy and a new force for humanitarianism in our community. The facility is also available for use by like-minded nonprofit organizations. To learn more, please call 717.293.4400 or visit sdhleadershipcenter.com. High Real Estate Group LLC 2
A New Breed of Luxury Apartments By Brad Mowbray, Senior Vice President & Managing Director - Residential Division, The Reserve at Greenfield celebrated its grand opening this fall, welcoming new tenants to Lancaster s Greenfield Corporate Center from around the country. With elevators, secure access, and finishes one would find in a custom home, such as quartz countertops and soft-closing cabinetry, The Reserve addresses demand at the high end of the growing apartment market. The 82 units are designed for empty nesters, professionals, and others who prefer the flexibility of renting but want the upscale comforts and amenities of a condominium. The Reserve reflects trends that are more commonly seen in major metros such as Washington DC, Philadelphia, and other The Reserve at Greenfield, 82 apartment units with upscale comforts and amenities in Greenfield Corporate Center. nearby metro markets. As these trends take hold in South Central Pennsylvania, we re going to see more vertical developments that make better, more efficient use of land while emphasizing continued on page 5 Grand Opening of The Reserve at Greenfield From left to right: Mark Fitzgerald and Brad Mowbray with Tina McGinnis, Regional Manager-Residential; and Rick Stoudt, President, High Construction Company. Quartz countertops and slate finish appliances make kitchens feel like home. (Photo / Jenny Wentz, CPBJ) The lobby at The Reserve at Greenfield is an elegant yet casual space to welcome residents. A pet spa tops a long list of amenities at The Reserve at Greenfield. (Photo / Jenny Wentz, CPBJ) View the full story at Central Penn Business Journal: https://goo.gl/lgnhwh High Real Estate Group LLC 3
What It s Worth: Commercial Real Estate Appraisals By Eric Lehmayer, MAI, Director of Appraisal Services, High s real estate customer base is them understand the appraisal process, diverse and includes lenders, attorneys, particularly if it s their first experience property owners, buyers, accountants dealing with a commercial appraisal. and developers. Some customers need To go about determining appraised assistance determining the type of value for most commercial properties, appraisal they need for a specific property. I find similar properties in the market That s determined by addressing two with which to compare to the one being overarching questions: (1) What are the appraised. If an investment property is characteristics of the property?, and, (2) tenanted, then there are usually similar Why is an appraisal needed? Normally, properties in the market. Similarly, if the these questions lead to more questions property is owner-occupied, with little until finally a clear picture emerges as to to no investment potential, sales of what is required for the assignment. comparable properties can usually be found in the market. In my role, I review the types of appraisal options available and explain what is actually involved in the assignment in terms of complexity and time required to complete the report. So, initially, there is a process of educating the customer to help But sometimes you may run into special-purpose properties such as specialty manufacturing facilities with unique construction components, recreational facilities, or other properties In my role, I review the types of appraisal options available and explain what is actually involved in the assignment in terms of complexity and time required to complete the report. that can only be used for a very specific purpose which really limits the number of potential users. These properties can be appraised by estimating replacement costs and valuing the underlying land. In most cases, customers want to find the highest and best use for their property. This term refers to the use that continued on page 5 Appraisers consider whether an alternate use would yield the highest and best use for the property. High Real Estate Group LLC 4
High Hotels Ltd. Pilots State s First Hospitality Apprenticeships continued from page 1 Besides making High Hotels more competitive as an employer, the program will benefit the organization s retention goals by attracting the kind of people who want sustainable careers. Rethinking apprenticeships to boost the hospitality industry is an innovation that will help bring sustainable careers to more people in Lancaster County and beyond. The High Philosophy states that we will build trustworthy relationships and be innovative leaders. With thanks to Ski and HACC, we ll soon have the opportunity to put that ideal into the market in a new way. Kathy Prime is Chief Learning and Talent Development Officer, High Company LLC, and leads High s strategic priority of supercharging talent and organization development throughout its businesses. Kathy Prime Chief Learning and Talent Development Officer High Company LLC 717.209.4079 kprime@high.net A New Breed of Luxury Apartments continued from page 3 quality, easy access to highways and proximity to businesses. Like The Reserve, they will offer fitness centers and yoga studios, pet-friendly policies, bike storage and repair facilities, nearby footpaths, recreational open space, and more that fit the lifestyles of the target demographic. Recently, High introduced web-based leasing to allow users to view, reserve, and lease units across the portfolio. This has accelerated the pace of leasing for The Reserve and throughout High s portfolio of 11 apartment communities. After only three weeks on the market, The Reserve at Greenfield was 40% leased. High has focused its residential strategy to address the demand across a broad spectrum of housing, from workforce housing to new upscale projects. Our plans are to grow our portfolio through development and acquisition, in a sustainable fashion that ensures that there are more great communities that we are proud to be associated with and that our residents will love. With the demographic shifts and trends in mind, we are positioning our communities to be a preferred residential option to all market segments in our core markets. Brad Mowbray, Senior Vice President & Managing Director - Residential Division,, leads the operation and growth of High Real Estate Group LLC s Residential division. Mr. Mowbray has more than 16 years of experience in the real estate, investment banking and private equity markets, having closed $2 billion in transactions, including the acquisition and development of 6,000 apartment units. Brad Mowbray Senior Vice President & Managing Director - Residential Division 717.209.4052 bmowbray@high.net What It s Worth: Commercial Real Estate Appraisals continued from page 4 would be most likely for a piece of land and for an existing building. The appraiser must analyze the property as if it were vacant land and appraise it in terms of the use that would most reasonably yield the highest value. Of course, the possible uses have to be permitted by the local zoning ordinance. An improved property is analyzed in terms of current use, with consideration given to whether the property should continue with its current use or if an alternate use would yield a higher value. Sometimes, the highest and best use is to demolish the building and redevelop the site. Eric Lehmayer provides customers with commercial/industrial and special-purpose property appraisals, financial feasibility, market analysis, real estate tax analysis, litigation support, and appraisal review services. He also is responsible for the evaluation of real estate tax assessments for all High family-owned real estate and syndicated partnerships. Eric Lehmayer, MAI Director of Appraisal Services 717.209.4027 elehmayer@high.net High Real Estate Group LLC 5
High Hotels Ltd. Opens SpringHill Suites in Mt. Laurel, N.J. Anew SpringHill Suites by Marriott 135- suite hotel, developed and owned by High Hotels Ltd., opened in October in Mt. Laurel, N.J., in the Laurel Corporate Center. The property offers guests convenient access to nearby businesses, attractions, and services, including four adjacent restaurants. SpringHill Suites by Marriott offers extra space with suites larger than typical hotel rooms, complete with areas for both productivity and relaxation. Guests enjoy favorite amenities during their stay, such as daily complimentary breakfast, full-service lobby bar and bistro, outdoor seating patio area with firepit, 24-hour fitness center, indoor swimming pool, versatile meeting space, business services, and free high-speed WiFi. We are excited to welcome SpringHill Suites-Mt. Laurel to our growing hotel portfolio, said Russ Urban, President, High Hotels. We know the property will be a strong addition to the local area, providing a convenient location, stylish and comfortable accommodations, and the amenities travelers know and love. Located at 5000 Midlantic Drive, the new hotel features displays by local artists. The hotel s extended stay format is suited to business and leisure travelers alike. From left to right: Pat Brogan, General Manager, High Hotels; Kristi Howell, President, Burlington County Chamber of Commerce; Dennis Riley, Mayor of Mt. Laurel; Russ Urban, President, High Hotels; and Heather Brady, Director of Education and Engagement, Grounds for Sculpture. RealEstate Matters High Real Estate Group LLC 1853 William Penn Way P.O. Box 10008 Lancaster, PA 17605-0008 Tel: www.highrealestategroup.com Recognized for Excellence Since 2001 Your Full Service Real Estate Resource Services: Industrial / commercial brokerage, leasing, and development Asset and property management Strategic planning and consultation Corporate real estate services Appraisal services Construction services Architectural design Hotels Real estate investments Affiliates: www.highassociates.com High Construction Company www.highconstruction.com Greenfield Architects Ltd. www.greenfieldarchitects.net High Environmental Health & Safety Consulting Ltd. www.highehs.com High Hotels Ltd. www.highhotels.com 2017 High Real Estate Group LLC 6