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Bio
Jeff Berkes, President and Chief Operating Officer, joined Federal Realty (FRT) in 2000 as Chief Investment Officer, and in 2011, became President, Western Region, where he was charged with growing the company’s presence on that coast. During the period between 2011 and 2019, the property operating income of Federal’s West Coast portfolio more than doubled, representing over 10% compound annual growth.
Prior to joining Federal, Jeff was Vice President of Acquisitions and Finance for Velsor Properties, a Northern Virginia-based private real estate investment firm. He served as director of acquisitions for Federal from April 1997 to August 1998. Prior to that, he was vice president of acquisitions for Heitman Financial/JMB Institutional Realty Corp. He also worked as a loan officer for ITT Real Estate Services and as a regional investment analyst for CB/Richard Ellis prior to joining JMB.
Jeff has an undergraduate degree in finance and real estate from University of Denver and a master of business administration in international finance from George Washington University. Jeff is an active member of The George Washington University Center for Real Estate and Urban Analysis Advisory Board, the Urban Land Institute (ULI), and the International Council of Shopping Centers (ICSC).
Show Notes
- The President of Federal Realty (00:00:20)
- Jeff’s role as the President of Federal Realty and how it differs from Don Wood’s role as CEO.
- Impact of the Pandemic on the Industry (00:03:25)
- Discussion on the impact of the pandemic on the real estate industry and the strong rebound in leasing and tenant sales.
- Background and Origins (00:10:17)
- Jeff’s unlikely journey from growing up in a small town in Iowa to working in the real estate industry in major cities like Boston, New York, DC, Bay Area, and LA.
- Growing Up and Family Background (00:11:51)
- Jeff talks about his parents’ backgrounds and their careers before he got into real estate.
- Discovering Real Estate in College (00:13:21)
- Jeff shares his experience of finding an internship in commercial real estate during his college years and how it sparked his interest in the industry.
- Working at Coldwell Banker (00:14:15)
- Jeff discusses his internship at Coldwell Banker in 1982 and the booming real estate market in downtown Denver at that time.
- Susan Carras and Job Search (00:22:28)
- Jeff discusses how he met Susan Carras, who provided him with career guidance and introduced him to influential people in the industry.
- Working at ITT and GE Capital (00:23:23)
- Jeff talks about his job at ITT, a credit company lender, and GE Capital, where he worked as a lender and participated in deals involving transitional properties and shopping center acquisition loans.
- Getting MBA and International Finance (00:25:55)
- Jeff explains his decision to pursue an MBA in international finance at GWU to explore different career paths and gain knowledge in a related but distinct field from his undergraduate studies.
- Velsor Properties (00:33:07)
- Jeff’s career move to work for Larry Horowitz at Velsor Properties and leaving Federal Realty.
- Federal’s Transition (00:33:45)
- The hiring of Don Wood as CFO at Federal Realty and Jeff’s departure from the company.
- Acquiring Industrial Properties (00:35:22)
- Jeff’s experience working with Larry at Velsor and their investment strategy in Northern Virginia.
- Transitioning to President Role During the Pandemic (00:43:55)
- Jeff discusses his transition to the role of President at Federal Realty right before the pandemic and the challenges he faced on the West Coast.
- Managing Real Estate Functions on Both Coasts (00:44:17)
- Jeff explains his role in managing real estate functions for Federal Realty on both coasts and the teams he works with.
- Navigating the Pandemic and Supporting Tenants (00:45:51)
- Jeff discusses the all-hands effort at Federal Realty during the pandemic, including daily and weekly meetings to address tenant issues and support them through creative deals.
- The growth potential in the West Coast (00:55:21)
- Jeff discusses the potential for growth in the West Coast real estate market, particularly in terms of adding density and pushing rents.
- Federal Realty’s presence in California (00:55:53)
- Federal Realty’s presence in different cities in California, including Los Angeles, Phoenix, and the Bay Area.
- The redevelopment opportunity in San Diego (00:57:39)
- Jeff talks about the redevelopment opportunity in Grossmont Center, San Diego, where most of the leases expire in 2025, presenting a chance to transform the property and change the rent roll.
- The transformation of Mid Pike Plaza (01:05:41)
- Discussion about the history and redevelopment of Mid Pike Plaza in Montgomery County.
- Pike and Rose development (01:06:43)
- Proudness about the Pike and Rose property, including new restaurants and office buildings.
- Federal Realty’s unique approach to property development (01:11:41)
- The goal of providing a special experience for customers through careful planning and creating synergy among retailers and businesses.
- The impact of redevelopment on properties (01:16:31)
- Jeff discusses the redevelopment of properties such as Tower Shops, Pembroke Gardens, Del Mar Village, and Cocoa Walk.
- Expanding into new markets (01:18:30)
- Jeff talks about the potential of entering markets like Atlanta, Charlotte, Raleigh/Durham, and Charleston, and the factors they consider before expanding.
- Adapting to capital market changes (01:21:09)
- Jeff explains how Federal Realty has adapted to changes in the capital markets, including rent collection, inflation, and interest rates.
- Sand volleyball courts and pickleball at Assembly Row (01:27:26)
- Jeff discusses the creative addition of sand volleyball courts and pickleball at Assembly Row, attracting hundreds of people for sports activities and socializing.
- The impact of the pandemic on office space demand (01:32:37)
- Jeff talks about the increased demand for office space as companies prioritize creating enjoyable work environments with amenities like restaurants and health clubs.
- Characteristics sought in employees at Federal Realty (01:36:32)
- The guest describes the culture at Federal Realty, emphasizing the need for honesty, curiosity, and a growth mindset in potential employees.
- The difference between private equity and public company mindset (01:40:02)
- Discussion on the cultural and mindset differences between private equity and public companies in terms of long-term investment strategies and steady growth.
- Federal Realty’s implementation of sustainability programs (01:43:41)
- Exploration of Federal Realty’s long-standing commitment to sustainability, including initiatives such as using solar panels and building LEED-designated buildings.
- Jeff Berkes’ integrated life and work priorities (01:48:08)
- Insight into how Jeff Berkes’ personal and professional life intertwines, with a focus on creating community spaces and constantly seeking out new experiences for potential business opportunities.
- The 25-year-old self (01:51:07)
- Jeff gives advice to his 25-year-old self, emphasizing the importance of networking and building relationships in the real estate business.
- The impact of networking (01:51:29)
- Jeff explains the significance of having a broad network of people in the real estate industry who do different things, and how it can benefit one’s career.
- Post a billboard message (01:52:43)
- Jeff is asked what message he would post on a billboard on the Capitol Beltway, and he suggests promoting Bethesda Row and visiting Federal properties.
