The Rose Companies, LLC, are dedicated to planning, developing, and investing in ways that will benefit humanity. “Our work is guided by a clear set of principles. Our mission is to repair the fabric of communities,” says the website. “Welcome.” MGB spoke with Jonathan Rose about how it’s done.
Looking beyond mainstream headlines into more industry-specific sources of information, it seems as though there are a lot of unsung success stories taking place in green endeavors, economic meltdown or no. For example, the Jonathan Rose Companies closed over 200 million dollars in development and acquisition deals in 2008. Is doing good actually beginning to translate into doing well?
Yes, we do find that doing good leads to doing well. We focus our work on the confluence of environmental, social and economic responsibility.
From an environmental perspective, that means not only building green, but building in green locations, which are walkable and/or next to transit, rather then suburban sprawl. From a social point of view, we integrate a mix of incomes and uses into our projects. And that gives rise to our partnerships with cities and not for profits, banks and investors, accessing "CRA" financing at attractive rates. This allows us to earn responsible returns.
I heard a talking head declare “Green is dead” on one of those days when the stock exchange tanked. Is there still resistance and fear out there vis-à-vis sustainable practices? Does that element of resistance and fear still hold significant power? And how do we soothe those who doubt?
In the real estate field, greening is actually more alive then ever. Because there is so little new development, developers and investors are paying a lot more to their existing properties, and increasingly are making them greener. When one sees global firms such as CBRE, Cushman & Wakefield and Bovis Lend Lease all committing to green their properties, it means that green has gone mainstream.
The Rose Smart Growth Investment Fund I, LP, is “committed to acquiring real estate near transit or in walkable communities, and enriching these assets with green management practices, professional real estate skills, and a long-term point of view. This work informs our planning, project management and development work with a deep understanding of the issues of operations, life cycle costs, and responsible citizenship.” Is there an example out there that you could direct people to look at, an illustration of what this type of development actually looks like on the ground?
The fund purchased a wonderful 1920's office building in downtown Seattle, the Vance Building. We then renovated both the core and shell and tenant spaces of the building with green strategies. As a result, the building's occupancy went from 68% to 96% and its rents from $16-18 per sq ft to $22- 26, almost a 50% increase.
If you were Sole Emperor charged with healing the economy right now, and no one could say no to you, what would you do?
The problem with our economy was that it was all based on consumption and short term thinking, rather then investment and long-term thinking. We need to invest in the infrastructure that will give rise to the future economy. This infrastructure has to be smart, green and strategic. We need new high speed intercity passenger rail, light rail and street car systems within cities, modern airports that are connected to intercity and local rail and great roads, we need smart streets that accommodate bikes, pedestrians, bus, rapid transport or street cars and cars and trucks, we need a modern freight rail system, a top notch high speed telecom data system, and much better water and sewer systems. We also need a clean and smart renewable energy system. And finally we need to upgrade our pre-k to phd public education system. All of these systems need to be planned holistically, and focused on America's top 100 metropolitan regions, which create 75% of our economic output. This investment will stimulate our economy and build the basis for our future growth. China, Russia, India, Japan and Europe are all making huge investments in these areas, so in fact, if we fail to do the same, we will fall way behind. By the way, the consensus of most real estate developers is that these smart, transit served locations are the best to develop, so creating the right infrastructure will create the basis for revitalizing our communities.
Comments, Pingbacks:
No Comments/Pingbacks for this post yet...
This post has 1 feedback awaiting moderation...
