How can Louisville best use some of its vacant Downtown tower space?

Determining what to do about Downtown office vacancies is a challenge that cities around the country are facing. Over the past several years, the idea of converting office towers into apartment buildings is one that has gained steam.

However, most office buildings are not good candidates for conversion because the existing plumbing and HVAC systems are not suitable to support residential living. For the small percentage of buildings that do qualify, public and private partnerships will be required to make it economically feasible for developers to pursue revitalization efforts.

Describe a development/project that was really rewarding for you.

One of the most educational deals I was a part of was one that did not go through.

In mid-2020, I went under contract to purchase a commercial property on Taylorsville Road in Jeffersontown. My plan was to convert the property into a co-working space. I created a business plan, engaged the Jeffersontown Economic Development Department to secure incentives, and spoke with several lenders about financing.

Unfortunately, post-Covid, banks were extremely cautious and after months of intense effort, the deal fell apart. I learned that regardless of how good your idea may be, timing and execution are everything.

How is a tightening lending market and higher interest rates affecting the industry?

It’s no secret that rising interest rates have affected commercial real estate sales volume.

On a national level, transactions are down almost 60% year over year, with investment real estate taking the biggest hit. There is currently a large delta between what buyers are willing to pay and the price sellers are willing to accept. The owners who have staying power can wait until we’re in a more favorable lending environment to sell.

However, those who don’t will have to modify their pricing expectations, which will lead to an overall decrease in commercial property values in the near term.

Predict the future: Which Louisville neighborhood will see the most commercial development in the coming years? I’m quite bullish on the Shelby and Logan Street corridor, particularly the area south of Logan Street Market. There have been significant investments made in the area over the last five years, and with both Logan and Shelby Street turning into two-way streets by the end of the calendar year, I believe it will bode well for commercial activity.

Additionally, the East Broadway corridor heading into Paristown Point and the section of Butchertown connecting the Lynn Family Stadium to the rest of NuLu are areas to keep an eye on.

What barriers must be addressed to make Louisville a more attractive place to live and do business?

Having spoken and worked with many commercial developers, one of their biggest pain points is how difficult it is to rezone property in Jefferson County.

The rezoning process takes anywhere from eight to 12 months to complete, even for noncontroversial projects and properties that are excellent candidates for a zoning change. This has caused many developers to consider opportunities in surrounding counties, including Oldham, Bullitt and Clark.

Why did you choose a career in real estate?

I’ve always had an entrepreneurial spirit, and I even owned and operated a small pasta catering company while I pursued my engineering degree.

After college, I began a career in software consulting, and I operated in that role until early 2019. As I searched for new opportunities, I considered real estate because my mom has been a successful residential agent in southern Arizona since 2010.

After researching the day to day of both residential and commercial agents, I felt that commercial real estate better aligned with my personality and desire to help entrepreneurs and investors achieve their business and financial goals.

What’s Louisville’s best-kept secret? One of the things I love most about Louisville is its diverse and ever-expanding culinary scene. Both JCTC and Sullivan University offer phenomenal culinary programs, and many alumni operate successful restaurants in town.

Additionally, Louisville’s international residents have created some of my favorite dining establishments. These include Panchitos, La Bodeguita de Mima, Queen of Sheba and Taj Palace, as well as many others.

As an agent, I’ve had the opportunity to represent several restaurant owners in town. I highly recommend checking out Cured Restaurant & Salumeria on Main Street and Miki’s Karaoke Bar on Frankfort Avenue.