Meet Jay Maddox (pictured here with son Ethan), Principal of Avison Young and self proclaimed “deal junky”. Jay’s history spans over 30 years in commercial real estate with tenures at both Kibel Green and Gramercy Capital.
Jay recently closed a Tempe retail construction loan with Fundrise, the first online construction loan funding.
1. Jay, tell us a little bit about yourself – what’s your background? Why did you decide to become a broker?
My first love has always been commercial real estate and I am a born “deal junky.”
I started out in mortgage banking with Weyerhaeuser Mortgage in the ‘80s then moved to Citicorp real estate investment bank in the early ‘90s. I did real estate bankruptcy restructurings and turnarounds during and after the Great Recession, then I joined Avison Young as a Principal where I’m both heading up debt and equity capital markets on the West Coast as well as building a consulting and advisory practice.
This is really the first time I’ve been in a purely intermediary role, but it’s a natural fit for me because of my diverse background and the many high-level relationships I’ve built with industry leaders.
2. What’s your favorite deal you’ve closed with Fundrise? Why?
I’d have to say it’s the Shops at Fountainhead deal in Tempe, Arizona. Our client, a very well-known developer in Orange County, was anxious to secure $3.1 million of construction financing for his Starbucks-anchored retail project in a suburb of Phoenix. Pre-leasing was insufficient for bank financing so we turned to Fundrise. To my knowledge, this was the first online funded commercial construction loan. The Fundrise team did a great job.
3. You see hundreds of deals every week – what trends do you think we’ll see in commercial real estate in 2016?
I think we will continue to see more new development and re-positioning of projects, particularly multifamily and mixed-use in urban infill locations. Los Angeles in particular has a serious housing shortage and affordability issues are shutting out most first time homebuyers, forcing them into the rental market. Despite some recent “black swan” events, the market is proving to be very resilient … I think we’ll continue to see low interest rates and strong capital flows into real estate.
4. What sectors look promising for the year ahead?
Rental housing, condominium, and hotel markets continue to look strong, especially in gateway cities.
5. What’s the most ridiculous project that’s come across your desk?
There’s a new one every week, it seems. I do remember a particular deal… A developer wanted to acquire a huge, vacant airplane hangar and convert it to an indoor, climate-controlled, luxury storage facility for RVs. Wow.