this issue - CREW Cleveland

THE OFFICIAL PUBLICATION OF
CLEVELAND’S SUCCESSFUL
WOMEN IN REAL ESTATE
Connections
this issue
Corporate Announcement. P.2
MOCA Recap. P.3
CREW Holiday Event & Awards. P.4
New Members. P.5
ISSUE
March 2013
2013 Annual
Sponsors.
PATRON
Bock & Clark
Property Tax Clauses. P.6
Chapter Calendar. P.7
25 Years
Remembering the Past…..Reimagining the Future
by 2013 C R EW Pres ident - D ebbie F eller
Huntington National Bank
McGladrey LLP
McSteen & Associates
As we celebrate our 25th anniversary, it is a great time to reflect on the accomplish-
Ulmer & Berne LLP
ments of the past, and an even better time to look forward to the future; a future
Vorys, Sater, Seymour & Pease LLP
where we use the backbone of the past, and the strength we’ve built in our organiza-
PROMOTER
tion, to move us one step closer to breaking through the proverbial glass ceiling.
Ariel Ventures, LLC
My goal this year is twofold- to bring every member of our Chapter tools they can
BakerHostetler
use to further their career in commercial real estate, promoting both personal and
First American Title Insurance Co.
professional growth, and to further encourage our members to seek opportunities to
Novogradac & Company LLC
Ostendorf-Morris Company
work together, and help each other climb the ladder of success, both within our own
Tucker Ellis LLP
organization, and throughout the commercial real estate field.
Our membership is diverse, ranging from new associate members just learning the
ropes, to seasoned veterans at the pinnacle of their careers; from architects to title
CREW Cleveland
professionals, attorneys to bankers and accountants, surveyors, engineers, develop-
PO Box 40517
ers, and realtors, every possible professional needed to get a commercial real es-
Cleveland OH 44140
tate deal done in Cleveland! This year let’s fill the roster with deals done within
p 440.364.0887
CREW! This year, let’s help each other within our own specialties, senior members
f 440.617.0716
[email protected]
www.crewcleveland.org
mentoring new members, new members encouraging others to join- for the benefits,
-for the camaraderie, and for the network. This year let’s make a difference. 25
years..…it’s about time!
2013
Board
of
Directors.
CORPUS SIREO COLLABORATES WITH U.S. REAL ESTATE
CONSULTANCY OSTENDORF-MORRIS
As of 1 January 2013, CORPUS SIREO
Ostendorf-Morris will enable us to offer
Asset Management, based in
international solutions to existing and future
Heusenstamm near Frankfurt, Germany, will clients that will let these companies focus
PRESIDENT
collaborate with the US real estate
on their core business in the best way
consultancy firm of Ostendorf-Morris
possible. We endorse a cost-effective
PRESIDENT-ELECT
based in Cleveland/Ohio. The companies
management without interrupting
Gail Bisesi
will cooperate internationally in the
operations, mastermind conversions, and
corporate real estate segment. For
identify optimization opportunities as well as
instance, the two real estate service
value-add potential. The partnership will put
providers will jointly manage portfolio
us in a position to provide these services
DIRECTOR OF FINANCE
mandates that CORPUS SIREO took over
beyond the German-speaking countries.”
Kris Cerny
when acquiring the asset management
Debbie Feller
IMMEDIATE PAST PRESIDENT
Kathleen Nitschke, Esq.
division of Treureal GmbH based in
David P. O’Neill, Executive Managing
Mannheim. Under this deal, CORPUS
Director at Ostendorf-Morris, commented:
SIREO will be responsible for any services
“Both in the United States and in the
MEMBERSHIP DIRECTOR
provided in Germany, Austria and
European core regions, there is a rising
Julie Perkins
Switzerland, whereas Ostendorf-Morris will
demand for corporate real estate services,
cover all non-German-speaking countries.
with companies requesting anything from
Looking forward, the partners also intend to
transaction handling to letting, and from
collaborate internationally in the acquisition
asset and portfolio management all the way
of new corporate mandates.
to project development and technical
COMMUNICATIONS DIRECTOR
Bozana Lundberg
PROGRAMS/PROFESSIONAL
DEVELOPMENT DIRECTOR
Jennie Church, Esq.
consultancy. By teaming up with CORPUS
Said Sandra Tewes, Client Group Leader
SIREO we have formed a powerful alliance
Corporates at CORPUS SIREO: “We are
in this sector, and so we take a long-term
pleased to say that the collaboration with
view of this collaboration.”
Uptown Girls (& Guys) Visit MOCA
Board
Meetings.
Open to all CREW members.
11:30 a.m.
Vorys, Sater, Seymour & Pease LLP
Penton Media Bldg.
Check crewcleveland.org for
monthly meeting dates.
(l to r) David O’Neill, Laurie Novak, Julie Lynch and
Larry Kell enjoy networking at MOCA.
MOCA provided the perfect backdrop and host for
CREW’s 2013 Kick-off event.
2013
Committee
Chairs.
SPONSORSHIP
Kim Campbell
Uptown Girls (& Guys) Visit MOCA
Counted among the coolest buildings of the year, the new Museum of Contemporary Art
building designed by Farshid Moussavi was the perfect place to kickoff 2013 and CREW
Cleveland’s 25th Anniversary. The building has four stories, rises 60 feet from a
hexagonal base to a square top and provides wonderful views of the Uptown District. It is
located close to the Cleveland Institute of Art, Case and all the other gems of University
Circle.
Mary Porter, Esq.
COMMUNICATIONS
Madeline McGrane
PROGRAMS/
PROFESSIONAL DEVELOPMENT
Deborah Lawrence-Auten
CHAPTER CHAMPIONS
Ndeda Letson
Mikel Duffy
NETWORK LIAISON
Diana Golob
Chapter President Debbie Feller welcomed members, and Diana Golob, Network
Liaison, shared the exciting developments and opportunities available from CREW
National. Jennie Church, Programs Director, and Mary Gerding, who stepped up this
year to help with event planning, introduced the special event. While CREW Cleveland
members are fluent in all matters involving commercial real estate transactions, they
greatly enjoyed learning about contemporary art and MOCA’s mission from Susan
Murray, Director of Institutional Advancement for MOCA.
After touring the exhibits, members also heard a presentation by Tammy Oliver, MRN,
Ltd., about the company’s commercial and residential projects in the Uptown District. The
District is now one of Cleveland’s most exciting neighborhoods. Members also toured the
Uptown Apartments, an uber modern residential apartment complex, the area has been
dubbed “the new downtown” by the New York Times. The apartments are conveniently
located next to Constantino’s Market, Barnes & Noble bookstore (with Starbucks inside),
and across from Panera Bread, and numerous other restaurant options! The Healthline
and other public transportation options make it an easy and convenient place to live.
Not too long ago, the intersection of Mayfield Road and Euclid Avenue was just another
empty street corner. Now, shops, apartments, a world-class museum and restaurants
exude energy and excitement. As one CREW Cleveland member, Sophia Deseran,
remarked, the joy of working in commercial real estate in Cleveland is seeing a project
come to fruition and improve our city.
We look forward to a wonderful 2013 and seeing you at our future events.
Enjoying the company of their CREW peers is
(l to r) Donna Dolezal, Bozana Lundberg, Sophia
Deseran and Sandy Cameron.
Diana Golob (left) and Lindsey Raab
Polichuk enjoy the MOCA tour and
networking.
CREW
Events.
CREW Holiday Event
A festive time was had by all!
On December 4, 2012, CREW Cleveland held its Holiday Party at Taza on West 6th Street in
Downtown Cleveland. Members enjoyed delicious Lebanese entrees and desserts.
Kathleen Nitschke (left) presents Amy
Whitacre with the 2012 Chapter
Champions Award.
Lori Crowe was the winner Coach purse
drawing to benefit CREW Fund.
Laura Hengle received the 2012
Member of the Year Award.
Madeline McGrane received
the 2012 Rising Star Award.
Taza was the perfect setting for great
networking at the holiday luncheon.
Debbie Feller wished happy
holidays and a successful 2013.
Not pictured: Radhika Reddy who was presented with the Deborah Rocker-Klausner Leadership Award, but could not be in
attendance to accept.
The 2013 Board of Officers was announced at the luncheon:
President:
President-Elect:
Immediate Past President:
Finance Director:
Assistant Finance Director:
Membership Director:
Programs Director:
Communications Director:
Network Liaison:
Chapter Champions:
Debbie Feller
Gail Bisesi
Kathleen Nitschke
Kris Cerny
Tammy Greber
Julie Perkins
Jennie Church
Bozana Lundberg
Diana Golob
Ndeda Letson & Mikel Duffy
Best of luck to the CREW Cleveland 2013 Board Members!
Welcome
New
Members.
Penny Spangler works at Chicago Title Insurance Co. as a
Commercial Real Estate Customer Service Manager. She has
worked in this position for approximately 1.5 years. Prior to
joining Chicago Title, Penny worked for several years in the
residential real estate industry before taking time off for family.
She can be reached at [email protected] or 216-6946423.
Shannon Thorsen is an architect and the Director for Business
Development for Moody Nolan’s Cleveland office. She has 10+
years' experience in the industry. She can be reached at
[email protected] or 216-432-0696.
Join a CREW Cleveland Committee!
Are you interested in becoming more involved? We have something for everyone.
Please consider joining one of our committees:
Membership (contact Julie Perkins at [email protected])
Programs & Professional Development (contact Jennie Church at
[email protected])
Community Outreach (contact Ndeda Letson at [email protected]
or Mikel Duffy at [email protected].
Sponsorship (contact Mary Porter at [email protected])
Communications (contact Bozana Lundberg at [email protected])
In Memoriam…
Join our group
It is with the saddest of hearts that we say good-bye to long-time CREW
member Judith A. Wolfe, age 59, who passed away on January 16, 2013
after a remarkable and courageous 10 year battle with colon cancer. She
began her finance and real estate career in Dallas and then settled in
Cleveland in 1996. She worked for Forest City Enterprises. She was a
CREW member since 2000.
CREW
Network.
Property Tax Clauses in the Context of a
Worldwide Economy
Every day, it seems to me that the planet is shrinking
just a little bit more. It is not uncommon now for landlords and tenants to manage their properties throughout
the world from one office, regardless of the actual location of the properties being managed.
Every time the real estate manager addresses a problem, she must first establish the exact parameters of
the property’s location, whether legal, fiscal, environmental, municipal, accounting, construction, etc.
What may be true and appropriate for a property in New York might not be applicable in London or
Montréal.
When parties negotiate a commercial lease, a great deal of attention is paid to the financial clauses,
such as basic rent, additional rent and apportionment of operating costs. Only after the lease has been
signed does the lessee often realize that the property tax clause, which provides for the method to establish the tenant’s proportionate share of municipal, school, and other local taxes, represents a significant amount of the occupancy cost – a cost that may be difficult to manage on a day-to-day basis.
Unfortunately, such clauses still make reference all too often to a “Separate Assessment” of the leased
premises. In the absence of such a Separate Assessment, a more or less sophisticated mechanism is
implemented to try to determine the lessee’s proportional share. At certain times, reference will be
made to the assessment method used by the assessor, or to generally recognized assessment principles, or to the parameters used by the assessor, etc.
The first thing one need to know is that, in Québec, there is no separate assessment for leased premises located in a shopping centre, or an office building for that matter. The Municipal Taxation Act (“MTA”)
provides for entry on the assessment roll by way of a unit of assessment which consists of the greatest
possible aggregate of immovables (real property) on one site, such as a shopping centre, a power centre or an office building.
Therefore, without a separate assessment, there is no realistic way to apply the tax clause provided by
the lease. Unfortunately some leases import into Québec assessment principles formerly used in Ontario but which were abandoned by that province in 1998! These two neighbouring provinces have different assessment customs that cannot and should not be introduced into legally binding contractual documents without the proper adjustments. Imagine the difficulties when you cross borders or continents!
There is no valid reason why a clause that can only be a source of misunderstandings be in a lease.
Moreover, the alternative methods provided in the lease to determine the property tax share for the
leased premises – i.e., the assessor’s method or the data contained in municipal files – are extremely
difficult for the lessee to apply. Indeed, in this province only the owner can access the complete assessment of his or her unit of assessment. As a result, a lessee’s access to the roll is restricted to general
financial data relating to the assessment unit and then, to specific data attributable to that portion of the
property as occupied by the lessee. This restriction exists to protect the confidentiality of the income
2013
Programs.
At a Glance.
April 17. Speed Networking w/ Akron CREW Chapter.
Winking Lizard, Peninsula, Ohio.
July. Community Involvement event.
September. Ariel International Center. Afternoon/evening event.
October. CREW National Conference. Dallas, Texas.
November. New Member Breakfast.
December. Holiday Party.
Are you speaking at a real estate event, being honored for you work, mentioned in a
publication or being promoted?
We’d love to share your professional news with other
members. The submission deadline for the next CREW Cleveland Newsletter is May 1. Please
send a brief description of your success to [email protected]. This opportunity is open to
all members of CREW Cleveland.