Neil Kozokoff Explains Apartment Syndication
Neil Kozokoff is a leading real estate professional that has made considerable achievements throughout his years in this career. Beginning as a professional focused in real estate law, Neil later moved to the business end of this occupation and has since lead many successful projects. Today, he is the noted President of Parkland Companies, a real estate firm located in West Palm Beach, Florida that focuses on urban development.
In addition to maintaining these pursuits, Neil has recently pursued a position as principal at Pensam Capital, LLC. Pensam Capital, based in Miami, is a leading syndicator of apartment communities throughout the United States. Pensam is recognized as a company that is highly capable of adding value to its properties through strategic improvements and top quality management.
As someone that has seen a lot of trends come and go within the real estate market, Neil understands that this industry can prove rather complicated. Although many terms and strategies are hard for consumers to interpret, he also notes that only those with many years of experience can truly grasp the nature of real estate trends and their implications. As such, Neil Kozokoff helps provide a little explanation on some of the strategies that have increased throughout the modern era of real estate.
Apartment syndication stems from a much larger business buzz word, known as “investment syndication.” In short, investment syndication refers to instances when a certain project requires financial assistance from many different investors to fully-fund an investment. Apartment syndication relies on these same principles, but instead focuses strictly on multi-family housing projects that can prove financially-stable and profitable in following years.
That said, apartment syndication relies on the work of a syndicator—or a major group that spearheads the project—to collect pools of funds from large groups of investors. While these apartment projects can prove costly in the end—sometimes totaling well in over $100 million—syndicators are easily able to achieve the necessary funds by collecting small chunks of money from willing investors.
According to Neil Kozokoff, while the idea of apartment syndication has remained present for many years within the real estate industry, today’s syndicators operate with different plans to create value. In the past, syndicators would simply use a “buy and hold” strategy, boosting investors’ returns through tax benefit programs and eventual appreciation of the property. However, in today’s market, syndicators must prove more aggressive in their campaigns.
While becoming an investor in apartment syndication decreases the amount of financial risk, it is still a considerable amount of money to set forth in today’s volatile economy—especially when considering that it involves real estate. For that reason, partners and investors must all remain on the same page and have the same plan for the apartment syndication to make sure that the end result is something envisioned by all those involved.
Some of the strategies that syndicators use in today’s apartment syndication focus on renovation and converting properties in deluxe condominiums. Of course, plans for developing these apartments must fit with the overall nature of the community. For instance, apartment syndication in an urban area that has yet to witness revitalization may not prove perfect for renovation. However, some may choose to renovate properties in these areas to create affordable housing for urban families.
Management of Syndicated Properties
While many syndicators may choose to buy and sell apartments for a profit through value-enhancing strategies, the syndicator may act as or choose a property management company to hold on to the complex. Sometimes, this approach can prove more valuable to investors if the syndicated property is leased to tenants who come from a background of commercial as well as residential needs.
Neil Kozokoff notes that while many syndicators have proven to lead profitable projects through simple maintenance and management of a property, those who usually see higher returns on an initial investment are those who continue to put investor funds towards the development of the project. In short, enhancing the overall value of the property through improvement projects will in turn increase the return on investment.
Risks of Apartment Syndication
While the rewards of apartment syndication projects can prove well worth an assortment of efforts, there are also a lot of risks involved with this approach. Since these projects generally require the funding of several investors or investment groups, it remains crucial for all syndicators to return the initial amount set forth along with the profit by avoiding risks. Many investors have learned the hard way that apartment syndication projects were fraudulent. For that reason, any investor must make sure that a syndicator or project leader has a clean track record and has well-defined plans for the project. In addition, it is important to assess certain risks as determined by local laws, taxes and community needs.
Neil Kozokoff Explains Urban Development
Apart from apartment syndication, according to Neil Kozokoff, urban development projects are another major trend found within the modern real estate industry. The term “urban” can often have a negative connotation, as many members of the public associate an urban area with one that is riddled with crime, poor local economies and ill-fated housing and business structures. However, through the work of urban development, leaders in real estate can help change this stigma and create urban areas that are noted for their rich supplies of culture, local business, creative arts, education and improved quality of life.
Urban development may focus on the repurposing of pre-existing structures that may have closed due to the building’s inability to meet construction codes or have simply gone without attention. Usually, urban development committees can revitalize these properties into useful community areas that are used for up-scale and affordable residential housing, commercial expansion, as well as for public needs—such as community centers or libraries. Other projects may simply start from the ground up, as investors purchase available lots found within urban areas.
While urban development poses a lot of risk to those involved, if they are completed in the right manner, the rewards can prove endless. For instance, if an urban development project is successful, it will not only have supplied a profitable resource for investors, but also have helped revitalize a community that was previously in need.
Assisting in Today’s Urban Development
Today, many may look to major urban development projects that have transformed popular neighborhoods such as those found in Brooklyn, New York, or the Echo Park area of Los Angeles. While these transformations are notable, there are many that are pursued on a much smaller scale. For instance, as the President of Parkland Companies, Neil Kozokoff has helped restore and create urban development projects found within the diverse area of West Palm Beach, Florida. Specifically, Neil Kozokoff and his team have made notable progress inthe Northwood neighborhood of West Palm Beach.
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