USA AWARDS 2024 - CEO TODAY - - 48 - My leadership style can perhaps be best described as a mix between democratic and laissez faire. Internally, we rely heavily on collaboration and consensus-building where ideas flow freely and our principals openly vet ideas and make methodical decisions. Outside of our principals, Ponderosa relies heavily on utilizing trusted consultants who possess motivations and abilities to independently manage tasks with little oversight or guidance. My style of leadership allows Ponderosa to make quick, yet educated, business decisions, mitigate transactional delays, and resolve challenges quickly. Employing this mix of leadership styles serves Ponderosa extremely well in that it wholly aligns with Ponderosa’s business strategy and brings out the highest level of performance from our team. How does Ponderosa approach the financing of acquisitions and new projects? What is your preferred funding structure and to what extent is it possible to consider the carbon footprint and ethical investment strategies of the lines of credit you use? Historically, Ponderosa has funded most of its development projects internally and through third party construction and permanent lenders. Ponderosa’s singular focus on developing single and multi-tenant build-to-suit projects leased to national retail tenants on a long term basis has allowed Ponderosa to foster longstanding relationships with a cadre of construction and permanent lenders. The vast majority of the retail projects developed by Ponderosa involve securing interim financing during the construction phase of these projects. Then, once construction is substantially completed and stabilized, Ponderosa secures permanent financing mostly through CMBS lenders, life companies, or investment funds. In specific instances, Ponderosa sometimes sells all or a portion of its completed projects to individual or institutional buyers. All of Ponderosa’s financing needs are secured from wellestablished lenders, domiciled in the United States, with track records of strong performance. Further, Ponderosa’s lenders are subject to a plethora of regulatory reporting regimes and specific requirements promulgated by their sponsors. Thus, carbon footprint and ethical investment strategies play a negligible role in Ponderosa’s financing needs. With increasing attention on environmental sustainability, what measures has Ponderosa implemented to ensure its projects are environmentally responsible? Traditionally, the real estate development industry has had a significant carbon footprint and has inordinately contributed to global greenhouse gas emissions. In recent years, the real estate development industry, as a whole, has become a forerunner for environmental sustainability through the adoption of standards of operation that implement environmentally responsible practices. Ponderosa strives to embed sustainability across all phases of construction, including planning, procurement, construction, and post-construction. For example, with regard to all buildings developed by Ponderosa, we seek to achieve LEED certification in order to proactively address all segments of environmental quality. At Ponderosa, not only do we view protecting the environment as a transcendent issue, but we also believe that protecting the environment is simply good business. Costs needed to operate sustainable buildings get significantly reduced over time resulting in increased rents, higher occupancy rates, and less turnover. We intentionally align ourselves with strategic tenants who also appreciate the importance of being environmentally responsible and recognize that embracing environmental sustainability is financially advantageous and the right thing to do. How do you anticipate the market will change in the next 2 years, and how is Ponderosa preparing to meet these changes? We believe the market for income producing real estate assets, such as retail shopping centers and single tenant assets will remain strong and steady for the next 2 years, especially in the trade areas where Ponderosa operates. Since the COVID pandemic, we have observed a discernible flight to quality in the retail development space from tenants, investors, lenders, and other stakeholders. Developing high quality commercial real estate property located in demographically desirable, highly traveled, “We believe the business of real estate is the greatest business in the world, and owning real estate will remain fundamental to financial success.”
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