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The Believer: An interview with Matthew Blesso

February 7, 2013 by blesso

An interview with Matthew Blesso (article source click here)

Matthew Blesso, founder and CEO of Blesso Properties, designs buildings to fulfill the physical and psychological needs of those who live in them. As a sustainable real estate developer, Blesso’s properties conserve water and continuously strive to reduce their carbon footprint. His process emphasizes passive strategies, an approach that harnesses the energy of the surrounding environs through building placement (relation to the sun), minimizing of technology, using materials that have a high thermal mass, and inclusion of plant life, particularly green roofs.

I met Blesso while heading a photography project on advanced uses of urban ecology in New York City. The green roof (designed by Balmori Associates, pictured above) atop his NoHo apartment is undeniably among the best in the city: a verdant, multi-tiered garden that benefits his life practically and pleasurably. The foliage absorbs rain water, prevents flooding sewers, cools the building in the summer, warms it in the winter, produces oxygen and reduces pollutant gases such as nitrogen, carbon monoxide, sulfur dioxide and ground level ozone. Blesso’s green roof demonstrates how sustainability can be achieved through smart design, a mindset embedded in his building practice.

On two separate occasions Matt and I spoke on the phone about his projects, the financial incentives for building sustainably and how to push the green movement forward. – Katie Bachner

THE BELIEVER: Green real estate development integrates social and environmental goals with financial considerations. What are some of the challenges to building green that you have experienced?

MATTHEW BLESSO: I think first and foremost it’s getting other people to embrace it and unfortunately, that even includes design professionals. Green building is often more work and more money. So if you already have a budget and the design professional has to meet this budget they actually have to put in a lot more time on some things that are going to raise the costs and make your job that much harder – it is often harder to enlist them. Then you will have other cases where you will have professionals that simply haven’t done sustainable things before – whether it’s engineers or sub contractors – so it’s ultimately only the developer that can push the process. That’s one challenge, the second one is the lack of a cohesive standard. LEED [Leadership in Energy and Environmental Design] has been the default standard and even that doesn’t have the respect that it did when it started. The third thing I would say is the lack of impetus by our political leaders to really embrace sustainable regulations. I think it’s better at the local level than it is at the national level. New York City is definitely more forward thinking in this regard than a lot of other cities and that really started with Bloomberg, but in my mind there shouldn’t be a choice as to whether to develop a green building. Everyone should have to incorporate sustainable practices, it shouldn’t be this option and we are really a long way from that.

BLVR: Right now sustainable development really depends on the private sector. Companies and developers really have to take that initiative.

MB: Well that’s the way it is today but what I am suggesting is that it doesn’t have to be that way. There can be regulations put into place, and I know the real estate board of New York and the industry are against these regulations but I am all for it. It doesn’t have to be a private choice; there could actually be far greater standards about the way we do things. LEED could be used as an example. LEED is very imperfect but it could just be a requirement for all buildings that everything has to be LEED certified, not that you get extra points for it, but because it’s the way you have to do it. Even if it makes economic sense, a lot of people just don’t know how to build sustainably and I think that when you are in a crisis you have to force people to learn. When architects are studying in school they shouldn’t have the option of taking sustainability it should just be the way building is done. You know that’s just the mindset, optionality just really needs to come out of it.

BLVR:I think there is this misunderstanding that transitioning into a green market place will lose jobs, while in reality doing so would create so many more jobs. Industries ranging from Lighting to HVAC systems to windows and materials across the board would need to change and be re-distributed. This would also prove in the long run less expensive for the consumers who use them.

MB: The increased costs in many cases are just kind of temporary because the more people who use sustainable products the more the cost of them comes down. Building things sustainably in general has become a lot cheaper in the last few years just because there is a lot more technology out there than there was before. We are producing more of it. Also the more that people learn how to do it the more it becomes part of the market place. When you factor in energy savings I don’t know if it even is more expensive.

BLVR: I think one of the best ways to make green building catch on is to make it as experientially interesting as possible. With all your buildings, it seems like design really plays a pivotal role.

MB: Oh yeah. We start with design, it’s not an after thought. It envelops everything we do and affects every decision that we make. We want all of our projects to stand out on their own and be special places. That’s irrespective of whether or not they are high end or more moderate income.

BLVR: What are some of your favorite technologies that you would like to use in buildings now or down the line?

MB: I think to answer your question a little differently, I think that in many cases I would like to use a lack of technology. I would like to use as little mechanical heating and cooling as possible and focus on passive heating and cooling. You know that’s not something that people have thought about much until the last couple of years. But you know the orientation of the house located relative to the sun for instance and wind can have a huge impact on how a house is heated and cooled. What you make it out of as well. The best thing you can do is not have a need for technology.

BLVR: Do you think energy management systems that help keep tabs on the amount of energy a building is using is something that should be incorporated into new buildings?

MB: Definitely. People don’t realize what they use and another thing that we like to do is just put it in the hands of the tenants. In most buildings in New York they just provide heat all the time and some buildings, depending on what they are used for, may provide AC. In many of the areas the lights are on 24/7. So we try to look at all of those things. We just did a project in Chelsea where we actually put in individual heat and air conditioning units so that tenants have to pay for it themselves. We have to pay more to install individual systems like that- but because tenants are getting the bill they will presumably turn their heat down or off when they are going out for the day. That saves a great deal of energy. The system that monitors a building’s energy use is a new technology but I think it’s the future. It will certainly allow for a lot of significant improvement in energy consumption.

BLVR: In addition to energy, conserving water is becoming increasingly important. What types of passive strategies are there to deal with water conservation?

MB: Green roof systems. You know what I was saying before about requirements, it should just be a requirement that every new building needs to have a green roof. You know because we just spit all that water out and it mixes with the waste water. When we have a big storm we are producing more water than the treatment facilities can actually handle and that means sewerage water is entering our waterways but if it were all just absorbed by roofs that wouldn’t happen.

Water is just going to be a bigger and bigger problem. It is going to be just like the oil problem in the next 50 or 100 years. It’s a shrinking commodity. We are just using more than we are replacing in terms of potable water. We have to do something differently. The reclamation and treatment is certainly a part of that.

BLVR: Where do you go to get expertise on sustainable materials, whether it be local or certified in a particular way or recycled ?

MB: This one is a little tougher because there is no one great answer – like this is the best material to use. You use the best information you have and then you make decisions. For instance bamboo is generally cited as a good material to use. I have it in my office and use it in other projects but it also comes from China so a lot of carbon is produced in shipping it to the U.S. It also has a lot of glues which have a varying degree of toxicity in them. So you think you are doing a good thing – I am not saying you shouldn’t use bamboo, but these are complicated answers. FSC [Forest Stewardship Council] certified wood comes from the west coast so if you want that stamp on your wood chances are you gotta get it from the west coast. So it’s FSC certified but you have to ship it across the country, which isn’t so great. It’s like when you’re buying food, is it better to get organic food or local food? There is not really a right answer to this.

BLVR: In terms of guiding systems, are there any other guiding systems that you find more helpful than LEED?

MB: No, I think LEED is the best we’ve got and I think it will get better. It was a good starting point. We had to start somewhere and do something and so I think everyone including those who administer recognize that it’s imperfect and that it will improve over time.

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The New York Observer: The Heat Seeker

May 7, 2012 by blesso

The Heat Seeker: Blesso Properties’ Albert Price on the Next Big Nabe (article source click here)

How does a small-town boy from Duxbury, Mass., predict what the next big neighborhood in New York will be? Albert Price, the newly named president and chief operating officer of Blesso Properties, has spent his 20-year career developing commercial, residential and multifamily properties in areas that he believes will be deemed the Big Apple’s next hot spot. The Commercial Observer spoke to Mr. Price, about the challenges of starting a new development and his excitement about a hotel project in Panama.

The Commercial Observer: How difficult is it to kick-start a development—not just any development, but the right one—in New York City today?
Mr. Price: I think with any development project, there are sort of two kinds of developers in terms of how Matt [Blesso, Blesso Properties founder and president] and I see it: You have your commodity developers that basically develop into a demand in the marketplace, and they are looking at bigger macroeconomic data and saying, ‘O.K., we think that over the next X number of years there’s going to be this much demand for this type of product, so let’s go out and figure out where the right places to build it are.’ Or they buy existing buildings and convert them into different uses, or even just buy existing buildings that they think because of the demand behind it that that product is going to experience more upside than others.

Matt and I have a somewhat different approach, and I think with most boutique real estate development companies they, to some degree, have the same approach. We really start with a concept, we start with a vision, of a niche in the marketplace where we see some sort of a demand. With respect to the [421 West] 22nd Street project, the niche that Matt saw there was really the niche of really not being able to purchase studio apartments that were improved to a level of finish and design that a typical high-end buyer would like. Most of the studios that are available in Manhattan are rentals. They’re not for sale. I think the 22nd Street project was really geared toward a reinvention of the studio into something that could be created as a condo and purchased by a buyer as a condo. We had a concept for design, sort of what are the things that studios in general—apartments in New York City—don’t have. Particularly with respect to studios, they don’t have a lot of storage and they also typically don’t have nice kitchens, and you’re typically challenged with space, because you have to fit furniture—a bed, a desk, workspace, an office, a dining room table—you have to fit that into one small room.

As a developer, do you prefer to build from the ground up or to do a gut renovation?
If we were buying a property that had some issues that needed to be worked through and needed to be redeveloped, we can create value at a number of levels along the way, not just through redevelopment, but also through good design. That’s a way that we and other boutique developers in the marketplace can gain advantage. If you have a strong point of view from a design perspective and you … get a good architect, you design it and you build it, more likely than not in a city as large as New York, as long as you have good taste, there’s going to be a subset of the population that is the perfect customer for you. And when you have a 7- or 8-unit building—or even up to a 20- or 30-unit building—it’s a lot easier to sell a building like that out quickly and to pre-sell it, so that the time you finish the redevelopment … or even if it is new construction, by the time you finish the building, it’s a lot easier to have those units pre-sold than it is if you’re building a building that has 100, 200, 300 units.

How many units are in the 22nd Street building?
Nine units.

Are you doing strictly residential now?
Matt has done primarily residential, it’s his background. I’ve done a combination of commercial and residential. The focus especially over the 2000s was pretty much on residential. That was where the market was, that’s where the financing was, and that’s what people really needed. That’s probably changing a little bit today, although people still need places to live. There tend to be more renters and fewer buyers, even at the luxury level.

Is it riskier to embark upon commercial developments in favor of trade?
There’s always risk. With risk comes reward. In our business model we really try to mitigate our risk through good design and thoughtful design and anticipation of a market that we would then build a product for. If you’re just developing based on where you see the macroeconomic force is, and you’re developing for larger users or you’re developing larger buildings, you may be more exposed to risk.

When you’re developing smaller buildings in niche markets, it’s really about how well you can assess your customer, and if you do a good job with that, then you’re really just renting or selling a small amount of space relative to the size of a market like New York City.

As a developer, do you want to remain in New York City? Or do you feel better opportunities lie elsewhere?
The Panama opportunity was interesting. Matt came across that on a trip down to Panama a few years back, came across an area in Panama called Casco Viejo, and Casco Viejo is a Unesco World Heritage site, and most of the buildings in Casco Viejo are between [300] to 400 years old.

It’s a building stock and if you look at it from a … context of developing in an urban location in the United States, and you’ve seen what’s happened in the United States with manufacturing neighborhoods and with other neighborhoods that have become rundown as a result of the suburbanization of America, that trend has reversed itself largely in the last 20 years. People have realized that it’s much more efficient to live closer together, with a lot of the amenities that can then be supported by a more densely-packed population, and people have headed back into the cities. What’s been happening in Panama is very similar. There was a somewhat of a suburbanization and then there was a pull-in back to the city. The modern part of the city has grown tremendously, and all that supports a very large customer base that again, back to the principle of being boutique and trying to do projects that are unique, if you can do something on a small scale that’s interesting in a populist area, you’re going to have a subsegment of the population that enjoys your product and becomes your customer. That was very much what was in mind with Casco Viejo, and we also see Casco Viejo as an area that probably has another 15-20 years of upside and growth as many of the more dilapidated older structures are actually restored. As that sort of movement gains traction, and there’s more and more critical mass of improved properties, you’re starting to see your first generation of professional people who normally would have lived in a modern part of the downtown, choosing to live in Casco Viejo. It has that same sort of bohemian appeal that places like Soho had and Tribeca had and the Meatpacking district had in the earlier years.

And how do you, as a developer, locate these neighborhoods you think will be the next Soho?
There are tell-tale signs. Anybody who’s spent their time being interested in those types of areas or those type of things kind of has an innate sense of where these things are happening. In many cases it’s more like the … I don’t want to necessarily say “artist,” but it’s more like the intelligentsia, in a sense, who sort of lead the way, who are a little bit more daring intellectually and choose to go into places that are considered by most other people a little more risky. Sometimes people who are happy to take that risk for the trade-off for more space or more creative type of lifestyle. So if you follow those types of groups and you see where they collect and you understand what is motivating them, to develop real estate for them is definitely a strategy and a preference that we enjoy.

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Urban Omnibus: making room

October 7, 2011 by blesso

Making Room (article source click here)

New York City has a remarkably diverse population and, in many respects, a remarkably heterogeneous housing stock to provide it shelter. From Riverdale to Tottenville, Flushing to Chelsea, Washington Heights to Jackson Heights to Brooklyn Heights, New Yorkers inhabit an amazing spectrum of residential building types, developed and accumulated over the history of the city. At many critical junctures over the last century and a half, New York City has been an innovative leader in housing regulation and finance, encouraging and shaping development to ensure that dwellings are safe and respond to evolving standards of livability.

But even with the great resources of its varied housing stock and its strong tradition of housing advocacy and reform, New York has a hard time producing enough housing to meet demand. And in moments of economic and social transition, housing supply and housing need can get seriously out of whack.

Over the last several years, the Citizens Housing & Planning Council (CHPC) has been researching and analyzing how and where New York’s residents live and the housing that is available to them. Their findings have revealed many discrepancies between the kinds of houses and apartments people need and those they can find. CHPC has identified New York City’s accreted mass of housing regulations and standards — all created with progressive and worthy goals in mind — as one of the factors that contributes to this mismatch. For example, regulations have tilted what the housing market produces towards larger units, for households assumed to be “families,” even though only 17% of New York’s dwelling units are occupied by traditional nuclear families. A huge underground or improvised housing market has developed over the last two decades as people try, often in desperation, to find places to live that are affordable and can accommodate their particular needs.

Around the world, architects, developers and policymakers are responding to the shifting demands of urban dwellers with new forms of housing in ways New York is not. If our city wants to continue to respond to the needs of its dynamic population, it must continue to innovate in the types of housing it produces. In 2009, CHPC brought architects from Tokyo, Barcelona, San Diego, Montreal and Leipzig to New York for a landmark symposium (read UO‘s coverage of that event here) that introduced an audience of housing experts from design, development, law, policy and government to the vanguard of housing design for 21st century cities.

This symposium was part of a broader project — called Making Room — to take a fresh look at how housing and space standards constrict the choices architects and developers are able to introduce into New York’s housing market. To move that project forward, CHPC asked the Architectural League to join with them to carry out a design study to produce new models for comfortable, desirable dwellings. Four teams of leading New York architects, each with expertise and a particular perspective, have been asked to respond to this challenge. On Monday, November 7, 2011, the architects and their teams — Stan Allen and Rafi Segal; Deborah Gans; Peter Gluck; and Jonathan Kirschenfeld — will present their ideas in an all-day symposium. This event is only one part of a much larger research and advocacy project that will include exhibiting these designs publicly and identifying what laws and codes currently on the books are preventing new modes of residential living from becoming available.

In the video above, CHPC Executive Director Jerilyn Perine (who was formerly the commissioner of the NYC Department of Housing Preservation and Development), Architectural LeagueExecutive Director Rosalie Genevro, Chhaya Community Development Corporation Executive Director Seema Agnani, and Blesso Properties President and Founder Matthew Blesso discuss the state of the city’s housing, the underground housing market and some of the kinds of changes that could make New York housing more responsive to the ways we live now. Over the coming months, Urban Omnibus will be providing regular updates on the Making Room project as it develops. Stay tuned.

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pmc magazine: NEW YORK’S HOST WITH THE MOST

August 7, 2011 by blesso

The Heat Seeker: NEW YORK’S HOST WITH THE MOST (article source click here)

A Spotlite on MATT BLESSO By Lori Zimmer

This month we celebrate entertainment–the people that inspire us through song, dance, theater and film. But entertainment is not just the performance, but also the experiential. We tend to overlook the brains behind the operations–the ones that bring the best entertainment to us–the ultimate host. And boy, Matt Blesso is the host with the most.

In the business world, Matt is best known as the president and founder of Blesso properties, an innovative New York firm that develops sustainable and eco-friendly luxury properties–

I first met Matt at one of his epic all-day brunches in his Soho penthouse. The room was full of friendly creative types, gabbing away, exchanges ideas while noshing on a huge spread of food and drink. Matt, ever the attentive host, was poised over a huge roast in the kitchen with a giant smile on his face. Matt’s brunches are like a modern salon, joining strangers to bond over good food and some stiff drinks. In the business world, Matt is best known as the president and founder of Blesso properties, an innovative New York firm that develops sustainable and eco-friendly luxury properties–not to mention his co-ownership in gay resort Fire Island Pines, and Brooklyn arts incubators, 3^rd Ward and Artists Wanted. With his feet firmly planted in not only the business, but also the creative world, Matt could easily sit back and let the money roll in. Instead, he has dedicated his life to sharing his wealth, through endless philanthropic events and programs.

Matt has opened his home to more than just casual brunches with artists. He selflessly welcomes strangers into his loft and roof deck, hosting a bevy of philanthropic and art events for organizations such as SCOPE Art Fair, Artists Wanted, Fourth Arts Block and private artists receptions. Most recently he and Amy Poehler hosted a benefit for the Worldwide Orphans Foundation, turning his loft into a catered affair,

not to mention his co-ownership in gay resort Fire Island Pines, and Brooklyn arts incubators, 3rd Ward and Artists Wanted. With his feet firmly planted in not only the business, but also the creative world, Matt could easily sit back and let the money roll in. Instead, he has dedicated his life to sharing his wealth, through endless philanthropic events and programs. Matt has opened his home to more than just casual brunches with artists. He selflessly welcomes strangers into his loft and roof deck, hosting a bevy of philanthropic and art events for organizations such as SCOPE Art Fair, Artists Wanted, Fourth Arts Block and private artists receptions. Most recently he and Amy Poehler hosted a benefit for the Worldwide Orphans Foundation, turning his loft into a catered affair, complete with open bars, passed hors d’oeuvres, aerial performers (hanging down his stairs) and bands in his living room, and on his roof – which also features a hot tub and an art installation from SCOPE New York, a two person bar called “Mandies,” by Andrew Ohenesian, which has a working beer tap.

Guys like Matt savor New York and all it has to offer, and use this drive to support the facets of the city that he loves so much. Matt’s philanthropy efforts reach potential donors in a way than a standard rented-hall benefit cannot. By welcoming people from all walks of New York’s rich cultural scene into his home, he creates an intimacy that hugely organized events

cannot, connecting on the individual level, and making the event–and the cause–now a personal relation. All this while throwing a hell of a party–the kind where you call your friends from his rooftop jacuzzi, cocktail in hand, and say, “You’ll never guess where I’m calling you from!”

Lori Zimmer: Where do you see yourself going in the next few years?

Matt Blesso: I grew up in Paterson, New Jersey, but have resided in New York since I finished college in 1995. Geographically, I feel very connected to New York City and could not imagine living any other place in the world. Figuratively speaking, I currently do not have a solid outline for the direction in my life. I feel I am cannot, connecting on the individual level, and making the event–and the cause–now a personal relation. All this while throwing a hell of a party–the kind where you call your friends from his rooftop jacuzzi, cocktail in hand, and say, “You’ll never guess where I’m calling you from!” Lori Zimmer: Where do you see yourself going in the next few years? Matt Blesso: I grew up in Paterson, New Jersey, but have resided in New York since I finished college in 1995. Geographically, I feel very connected to New York City and could not imagine living any other place in the world. Figuratively speaking, I currently do not have a solid outline for the direction in my life. I feel I am

somewhat of a late bloomer and still evolving. The one thing I know for sure: I will always need to have a strong sense of pride in my work and I hope to increase my philanthropic commitments in the future.

LZ: What book has changed your life?

MB: I spent ten years suffering from grueling chronic joint pain. Reading The Mindbody Prescription by Dr. John Sarno, cured me and completely changed my life. That has by far been the most important book of my life.

LZ: Tell us more about you personally–what are your loves and dislikes?

MB: I spend as much time as I can outdoors and somewhat of a late bloomer and still evolving. The one thing I know for sure: I will always need to have a strong sense of pride in my work and I hope to increase my philanthropic commitments in the future. LZ: What book has changed your life? MB: I spent ten years suffering from grueling chronic joint pain. Reading The Mindbody Prescription by Dr. John Sarno, cured me and completely changed my life. That has by far been the most important book of my life. LZ: Tell us more about you personally–what are your loves and dislikes? MB: I spend as much time as I can outdoors and

it has influenced my love of cooking and experimenting daily with the fresh ingredients available in my garden and at the farmers market. Other things I love are reading, yoga, dancing, classic cocktails, stinky cheese, Bali, and red wine. I try my best not to feel hatred towards anything or anyone. I simply aim to avoid those things that create an imbalance or negative energy in my life.

LZ: What is your favorite hot spot in New York?

MB: In an age where nightlife is constantly being documented and plastered all over social media sites, it seems to me the more hot the spot, the less it is an authentic NYC experience. More people have become spectators more concerned it has influenced my love of cooking and experimenting daily with the fresh ingredients available in my garden and at the farmers market. Other things I love are reading, yoga, dancing, classic cocktails, stinky cheese, Bali, and red wine. I try my best not to feel hatred towards anything or anyone. I simply aim to avoid those things that create an imbalance or negative energy in my life. LZ: What is your favorite hot spot in New York? MB: In an age where nightlife is constantly being documented and plastered all over social media sites, it seems to me the more hot the spot, the less it is an authentic NYC experience. More people have become spectators more concerned with “checking in” than participating without restraint. I generally have more fun at an underground party than at a club or restaurant with the occasional celebrity and line out the door.

LZ: Why is Matt Blesso here?

MB: To seek new challenges, help others, and enjoy the ride.

Matt Blesso is a sustainable real estate developer, friend of the arts, co-owner and developer of the Fire Island Pines Commercial District, Artists Wanted and 3rd Ward. He serves on the Boards of Worldwide Orphans Foundation, The Institute for Urban Design, The NYU Schack Real Estate Institute and The Citizens Housing and Planning Counsel. His latest project, with 3^rdWard and Chashama, is The Palms Dumpster Pools and Music Venue, is open for dips in the pool, live DJs, and local food in August, located in Long Island City.

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the real deal: A reinvention act for builders

October 7, 2010 by blesso

A reinvention act for builders (article source click here)

Even those who didn’t get burned during the downturn turn to smaller projects, venture outside NYC

These days, many developers are being forced to find new ways to occupy their time. While projects that were already in the pipeline are finally getting done, getting funding for large-scale new development projects in the city is still a rarity. As a result, many developers are downsizing their plans or looking outside the city for opportunities. Even developers who weathered the downturn well — and are still viewed as attractive borrowers by banks — are branching out.

Developer Matthew Blesso, the president of Blesso Properties, said his company avoided losing money during the downturn because their projects were mostly completed when the slump hit. As a result, the firm hasn’t had trouble getting financing. For a new project he’s developing in Chelsea — a nine-unit condo at 421 West 22nd Street — he said he’s received four different quotes for construction financing.

Regardless, he said, he’s been frustrated looking for deals in New York over the past few years, because he feels prices here are still inflated (see “Bubble or recovery?”).

“We’re not seeing opportunities in New York, despite all the time we’re spending looking,” he said. “We said, ‘Let’s look elsewhere.’”

Now he’s venturing into new territory (literally). He is building a boutique hotel in Panama, and, along with partners, purchased a complex in the Fire Island Pines that includes residential, nightclub, restaurant, hotel and retail space. He also invested in Brooklyn-based design center 3rd Ward, which is looking to expand its real estate footprint.

“We’ve sort of reinvented ourselves,” Blesso said. “We’ve found new ways to make money.”

Some developers are turning to smaller-than-normal projects while they wait for conditions to improve.

Halstead Property agent Rex Gonsalves was recently marketing a townhouse at 9 Commerce Street, and said he was surprised to see a number of developers looking at the place. He eventually sold it to one of them for $2.475 million. He noticed a similar phenomenon with a townhouse he was marketing on Horatio Street, which is “attracting a lot of builders,” he said.

For developers, converting an aging townhouse into a single-family mansion or several residential apartments can be a profitable, if small, project.

“It’s a smaller leverage of capital, and it’s something to keep them busy,” Gonsalves said.

Some developers have found viable new business models in ventures that started as side projects.

Josh Guberman, president and CEO of Core Development Group, is the developer of new condo LUX 74 on the Upper East Side, which was finishing up sales when the downturn hit. Since he escaped the worst of the recession, Guberman said, he’s had no trouble borrowing money, and has been approached by several lenders looking to do projects with him.

But Guberman, who has a summer home in Southampton, recently started helping a friend build and sell a Bridgehampton spec house “on a whim.” When the project sold at full ask just a few weeks after it went on the market, he realized that the area had potential.

“I realized that there are some undervalued areas in the Hamptons that still have an upside,” he said, noting that he is now actively looking at several deals in the area. “There are also some opportunities where risk is being rewarded.”

Plus, he said, he feels it’s a smart strategy to expand beyond Manhattan.

“Limiting yourself to one particular market right now might not be the smartest thing,” Guberman said.

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The Wall Street Journal: Leading for Kids in Need

July 10, 2010 by blesso

Leading for Kids in Need (article source click here)

At the moment, Matt Blesso sits on several boards. There’s the Institute for Urban Design, a progressive design and urban planning policy organization that emphasizes sustainability. There’s the Citizens Housing and Planning Council, which is a think tank. The Fourth Arts Block focuses on making the area on East Fourth Street between Second Avenue and the Bowery “a real cultural destination,” said Mr. Blesso. And he is also on the board of the NYU Schack Institute of Real Estate, where he studied 10 years ago.

The organizations have a lot in common with Mr. Blesso’s profession. The 37-year-old New Jersey native founded Blesso Properties 11 years ago to develop residential properties in the city. (With the real-estate downturn, Mr. Blesso has focused on buying most of the commercial property in the Fire Island Pines and developing a hotel in Panama. He also made an investment in the 3rd Ward arts collective.)

“I love New York City and I’m trying to make it a better place, but on a deeper philosophical level, I wanted to know, Who are the neediest people in the world and how could I help them?” Mr. Blesso said.

In early 2008, to satisfy that question, Mr. Blesso started a nonprofit to build sustainable housing for impoverished people in Central America.

“And then the [economic] crisis kicked in,” Mr. Blesso explained. “It was no time for a nonprofit so I decided to table it.”

Mr. Blesso quickly moved on to find an existing organization to which he could donate some time, one that supported orphan children. He eventually settled on the Worldwide Orphans Foundation, which was launched in 1997 by Dr. Jane Aronson, a pediatrician who works with children that have been adopted from Third World countries.

“I did a lot of financial due diligence,” Mr. Blesso said. “I look at my nonprofits the same way I look at my for-profit endeavors: as a venture capitalist. With a nonprofit company, the profits are positive social impact.”

Ms. Aronson suggested the two work together on a trial basis and that the Worldwide Orphans Foundation could use Mr. Blesso to reach out to a younger audience. He threw a fund-raiser at his NoHo apartment in June 2009, and that night, Ms. Aronson invited Mr. Blesso to join the organization’s board.

Mr. Blesso helps the Worldwide Orphans Foundation expand its donor base and has been focusing on a social media campaign. “We’re trying to embrace new ways of connecting with people, so automatically, by my age, I’m the one they ask,” he said.

As for balancing all his philanthropic work with his profession, Mr. Blesso, who grew up in Paterson, N.J., and studied economics at the University of Rochester, said: “It’s a challenge. But I enjoy it. I have all these things I like committing myself to, though it helps to have a great assistant and a great staff to make it work.”

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Bloomberg: Blesso Says Financing for Real Estate Has Improved

July 8, 2010 by blesso

July 8 (Bloomberg) — Matthew Blesso, founder and president of Blesso Properties, discusses the outlook for commercial real estate and the prospects for the New York residential property market. Blesso speaks with Deirdre Bolton on Bloomberg Television’s “InsideTrack.” (Source: Bloomberg)

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NYU: Matt Blesso-Award for Humanitarianism

July 7, 2010 by blesso

Matt Blesso-Award for Humanitarianism (article source click here)

Bart Lawson, a 1992 graduate of the Paul McGhee Division at the NYU School of Continuing and Professional Studies (NYU-SCPS), was a distinguished member of the alumni community of our School. During his lifetime, he made generous contributions to provide financial aid to McGhee students. He served on the Council for the Future of NYU-SCPS, and participated in helping our students better understand the healthcare field through lectures and private conversations. Outside of NYU-SCPS, Lawson dedicated his energies to solving healthcare problems the world over. He was president and executive director of the Greater New York Healthcare Facilities Association, and served on the transition teams of Mayor Rudolph Giuliani and Governor George Pataki before being appointed to serve on the Governor’s Medicaid Task Force. He also served as ambassador–at–large to the United States Grenadian Mission to the United Nations, Grenada. Using his resources and expertise, he worked hard to make the world a better place by dedicating his energies to solving healthcare problems.

Upon Lawson’s premature passing, NYU-SCPS established this award to pay tribute to his legacy, and offer the members of the NYU-SCPS community the opportunity to recognize these qualities and dedication to service in others.

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Bloomberg: Blesso Sees Commercial Real Estate `Cloud’ Over Banks

October 7, 2009 by blesso

Oct. 28 (Bloomberg) — Matthew Blesso, founder and president of Blesso Properties, talks with Bloomberg’s Deirdre Bolton about the commercial real estate market. Blesso also discusses the outlook for the New York residential property market and Blesso Properties’ business strategy. (Source: Bloomberg)

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Euroinvestor.fr : Blesso Properties Sells-Out Harlem Lofts and West Village Townhouses at Record Prices

July 7, 2008 by blesso

Blesso Properties Sells-Out Harlem Lofts and West Village Townhouses at Record Prices (article source click here)

Blesso Properties (BP), founded by President Matthew Blesso, has once again achieved surprising sell-outs in today’s
softening real estate market, celebrating record-breaking sales of high-end properties in the competitive New York City arena. In addition to the complete sell-out of its Harlem renovation “Loft 124” in June, where units sold for over $1million, BP also recently sold two West Village townhouses for per-square-foot prices, placing them in the top five highest ever for the downtown market. The company has revitalized the weak Harlem market and leapt to the top of the West Village townhouse market by implementing a successful formula that combines smart renovations, distinctive design and ultra modern finishes while capitalizing on each project’s neighborhood context.

When BP entered the Harlem market in 2004 with the idea of bringing downtown luxury design to an uptown residential development, the firm anticipated the drawbacks of the location, “Convincing lenders and investors of our ability to sell condos at Manhattan prices on an undesirable block in Harlem was not easy,” explains Mr. Blesso. By incorporating high-quality design and distinctive renovations, this project appeals to the discerning buyer looking for a unique product. The strategy paid off, and Loft 124 exceeded expectations by setting a record for the highest average sell-out of any condominium north of 111^thStreet; one unit even contracted for $125K over the asking price in December 2007.

The Harlem market was especially soft in early 2008, but unlike other projects that required price reductions to sell units, BP never lowered prices for Loft 124. In fact, at the time the eleventh floor penthouse went into contract at more than $1,000 per square foot, it was the highest price ever for a sale above 111^thStreet. Today, Loft 124 is considered one of the finest residences in Harlem. Equally impressive sales of two pre-Civil War West Village townhouses quickly followed: 42 Jane Street and 9 ½ Jane Street, which sold for a combined figure of more than $16.7 million. By designing state-of-the-art kitchens, adding large windows, terraces, sky lights and incorporating views of the Empire State and Chrysler buildings, award-winning architects Murphy Burnham & Buttrick created clean contemporary spaces that are amenable to any decorating style. He further explains, “because these units were in bad shape, buyers weren’t interested. However, because they are single family, they were flying under the radar of other developers.” Blesso recognized the special opportunity and recently sold both gut-renovated units at a large profit.

The BP formula emphasizes unconventional thinking, high-quality design, attention to detail, and a closely-monitored construction process. This has helped the firm thrive even while the housing market struggles. What truly sets Blesso Properties apart from the rest is simply the difference between accepting something good and creating something spectacular.

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