Build Me Up: Real Estate and Development Trends
The latest Build Me Up podcast features a discussion with Peter Diessner, Jeff Hildahl and Matt Alexander, three Kraus-Anderson leaders in Real Estate and Development. The three sat down in our podcast studio to share some of the complicated process of development, how rising construction costs, online retail and the affordable housing challenge are shaping the future of development, and the strategy behind creating a sense of community within the built environment.
Meet Peter Diessner, Jeff Hildahl and Matt Alexander
Peter Diessner is President of Kraus-Anderson Realty and Development. Prior to this role, he was Vice President of Kraus-Anderson Financial Services Group, providing financial analysis, underwriting, due diligence, and sourcing and funding of debt and equity for KA’s existing and prospective portfolio of real estate. Pete’s legal and finance backgrounds provide him with a thorough understanding and well-rounded perspective of real estate deals. Prior to joining Kraus-Anderson in 2018, Pete spent about four years building and operating his own successful real estate law practice at a well-established firm in downtown Minneapolis, and before that he practiced real estate law for about six-and-a-half years at one of Minnesota’s largest and most prestigious law firms.
Jeff Hildahl is Senior Vice President of Properties & Leasing at Kraus-Anderson Realty. He is responsible for the execution of Kraus-Anderson’s real estate asset strategy, overseeing all aspects of leasing, property management, acquisitions, and dispositions. This includes driving growth and value to Kraus-Anderson Realty Company’s diverse portfolio of five million square feet across the upper Midwest. Jeff leverages his deep national experience in asset management and leasing to optimize our portfolio’s value and strategy with a full life cycle.
Matt Alexander is the Senior Vice President, Kraus-Anderson Development. Matt oversees Kraus-Anderson Development Company’s development strategy and investment opportunities, and the underwriting and due diligence of all commercial real estate transactions, including large mixed-use developments, office, medical office buildings, hospitality, retail and multi-family housing. His depth of experience includes CityPlace, a 100-acre mixed-use multi-phased development in Woodbury, MN; medical office buildings throughout the Twin Cities metro; and early entries into senior housing development with projects for KA’s own portfolio and for third-party owners. He also led the Development team’s work with the City of Richfield on Chamberlain Apartments.
The High Stakes World of Development
“It’s kind of like being a professional gambler. You really have to hedge your bets at every corner.”
Adapting to Online Retail
The surge in e-commerce sites like Amazon have been causing a steady decline in retail stores. Clothing stores are expected to take the biggest hit, with nearly 25% percent of stores predicted to close by 2026, according to the Bureau of Labor Statistics. “Five years ago, big box outlets would go at a premium. Now, I wouldn’t even touch them because you don’t know which retailer is about to fall.”
While online shopping is on the rise, the three leaders agreed that the coming years will be about how the two conflicting industries will interact with each other. For example, Kohl’s is allowing Amazon package return in its stores nationwide. Similar models could be the key to survival in an online world.
The Impact of Rising Construction Costs
“Building that community is great because it’s easy to leave an apartment, but it’s hard to leave a community.”
The Future of Affordable Housing Development
“We all recognize the need for affordable housing, there is no doubt about that. But I think there’s something yet to be desired on determining the best solution to get there.”
Tune into Build Me Up for more
Check out the latest episode of Build Me Up, featuring Kraus-Anderson’s Peter Diessner, Jeff Hildahl, and Matt Alexander, for a more in-depth discussion of what’s driving development, including affordable housing and rising construction costs, reinventing brick and mortar retail, the rise of Air BnB; and more. You can subscribe to Build Me Up wherever you listen to your podcasts.
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