Architects (And General Contractors)…

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Architects (And General Contractors)… VOLUME FIVE ISSUE FOUR - SUMMER 2012 Architects (and General Contractors)….. If They Only Knew By: Billy Procida Procida Funding & Advisors www.procida.com It is still amazing to me after 32 the pie and is the first to get foundation of which was years in this business that you blamed if something goes architects playing contractor need a license for virtually wrong; which is why I quickly and developer. During the last everything in this business turned to real estate 32 years, I have been except to be a developer. As a development by age 19 all while surrounded by architects on a financier I have met hundreds honing my construction skills. daily basis and have been of people who call themselves blessed to work side by side developers, they come from all It is worth noting that my older with the likes of Michael Graves walks of life, former lawyers, brother went to college for and Bernardo Fort Brescia to bond traders and my favorite engineering and architecture, the other end of the spectrum the doctors and dentists. While and went on to earn his masters of solo practitioners that while I've never kept data on the in architecture. In 1980, there unknown are very talented. subject it’s safe to say that less were no schools teaching real Recently, we have been working than 5 % of the people I've met estate development so I went with Gaetano Development, that call themselves a developer right out of high school into the Steve Gaetano AIA, architect have any architectural or real world. We concocted a plan turned developer. He built construction training. I find this as kids and it worked out well. I $50,000,000 in condos on so bizarre because a figured out how the Central Park North and made developer’s most important role development game worked millions. Had he just been the is overseeing and directing the (and it is a game) and he went architect he would have made architect and the contractor and off to college to learn more $500,000 fee and after establishing the vision of what is about designing and building. expenses, maybe $100,000. So, to be built. How can someone We quickly assembled a team of you see, here is an architect supervise something you have architectural grads; my who did what architects do, no knowledge of? brothers’ roommates and design and oversee the friends from Lehigh and UCLA construction of beautiful I started in this business as a and a few of my friends that I buildings. The only difference laborer, then mason tender, grew up with who also went to was he found the property and then cost estimator, then punch college for architecture. the financing to build it himself. list super, then project Interestingly, we took a sleepy manager; the typical life of a old, small, 5 person Before I get into the meat of the general contractor’s son. I construction company and grew subject, I do need to note that quickly found out that the it into a nationally ranked as a youngster growing up I general contractor took on way powerhouse general contractor thought architects were “the too much risk, did way too and a nationally-ranked award- devil.” All I ever heard was my much work, for way too little of winning development firm, the dad fighting with architects and complaining how they were their signature on what will • Lawyers are all driving him crazy and doing him become an imprint on the world specialists just get a wrong. That is how we came up landscape. Whether it’s a whip and try to keep with the “if you can't beat them house being renovated or a hi- them in the cage. become one of them” strategy. rise or a store. What architects I later learned it was really the leave behind is perhaps the I'd say generally architects have developer doing us wrong and most significant contribution to more integrity than most using the architect as the society as it is what we see, developers but most messenger. I also learned and I where we work and live. importantly, architects truly think the industry has evolved care what they leave behind to understand that architects Architects are the artists of our and truly care about the and contractors have to work as environment. That's why they community. a team. The evolution of should become developers. “construction management” Every architect has seen their All you need is to embrace it; and the “owner’s rep" has client screw up the the rest will come naturally. If helped improve the efficiency of implementation of the plan by chance a component doesn’t our business a great deal. So causing it to look bad, go over come to you naturally there's a what about all these bad budget or behind schedule in consultant for everything today. developers? some way making the architect As a financier, I can say that I and general contractor look require the developer to bring Well when things go good they bad. I know I keep lumping the his architect to a meeting early make a lot of money and the GC in with you architects but on. Generally the architects architect and general contractor the best developer is the mind have the answer to most of my make a modest days pay (if they meld of an architect and GC questions with general get paid) but proportionately with a flair for promoting their contractors being a close insignificant to the general product combined with second. Remember there isn't a contractor and architects. BUT disciplined budget and schedule development deal in the world when things don't go well these compliance and quality control. that doesn’t start with an developers have a tendency The only missing links are: architect so might as well get even a propensity to stiff the finding the deal; financing the started. Become a developer! architects. If architects only deal; managing the lawyers; knew what the developer is selling or renting the product. William “Billy” Procida is really doing. Does he/she really President of Procida Funding & have the money to build the So just some quick thoughts: Advisors, based in Englewood building? Does he/she even • Looking for deals? Call Cliffs, NJ. The firm specializes have the money to ever pay our 10 real estate brokers in providing management and fee? and tell them what you capital for both distressed and are looking for and it value-added situations and Unlike general contractors who will come. manages The 100 Mile Fund, tend to be rough and willing to • Financing the deals? the third fund Mr. Procida has ask anything, like show me the Call 10 mortgage formed. During his 30-year money. Architects are closer to brokers or real estate career, Mr. Procida has artists and tend to be less crass private equity firms completed several billion and aloof as if they are not in it and you will get the dollars in projects as financier, for money. They are in it money. developer, builder and because at its most restructuring advisor. fundamental, they are putting .
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