Why Golub & Co. Headed West

Golub & Co. has had a presence in the western region for decades, with investments in Arizona and California as well as Colorado, but Michael Newman, principal, president and CEO of the company took a moment to discuss the company’s new office in Denver and its plans for continued investment in the region.

GlobeSt.com: What made this the right time and place to open your first office outside of Chicago/?

Michael Newman: We’ve seen tremendous growth across the Rocky Mountains and the Western region over the past two decades and believe the fundamentals will stay strong long-term. We are actively seeking acquisitions and we’ve chosen to plant roots in Colorado because of our previous experience in the region and the great potential we see going forward.

GlobeSt.com: What is the company’s history of development and investment in the Western region? 

Newman: Golub & Co. has had a presence in the region for decades, with investments in Arizona and California as well as Colorado. In Colorado, we are part of a joint venture that owns One Aspen, a residential townhome development. We entered the Colorado real estate market in the late 1980s and have previously invested in properties in Denver and Snowmass.

More recently, we’ve been a co-developer on two major projects in San Francisco’s revitalized Transbay neighborhood, including the ground-up development of Park Tower at Transbay, which was recently leased by social media giant Facebook in a landmark deal.

GlobeSt.com: What are your shorter- and longer-term goals for the new office?

Newman: We’re focused on building strong relationships in the Western region and sourcing deals that provide great value for us and our partners. We’re in the midst of a search for a senior-level executive to be based in Denver and head up these efforts. We plan to make investments in both value-added properties and opportunistic development.

Over the long term, we hope to establish Golub & Company as one of the leading developers and real estate investors in the Western U.S., committed to bettering communities through thoughtful development, just as we are known in other markets and overseas in Central Europe.

GlobeSt.com: What are the trends and investment drivers you’re observing in the Western region?

Newman: In the Denver area in particular, the population has grown by 100,000 over the past seven years. The pace of growth is starting to slow, but the influx of new residents will have a sustained impact on the real estate market for years to come. New residents are coming to Denver and other cities in Colorado because of a strong job market and their high “livability” – the natural beauty and year-round outdoor activities and vibrant dining and entertainment options. All of these attributes also make the area very attractive to investors.

GlobeSt.com: What similarities do you see between major Western cities and Chicago? Newman: In Denver, Chicago and the Bay Area, we’re paying attention to how the tech industry – and its growing office space needs – is helping shape new live-work-play neighborhoods, such as the Transbay neighborhood in San Francisco and the West Loop in Chicago. The big tech campuses are having a profound effect on office space across industries. As other companies compete to retain and attract employees, we’re seeing an increased demand for buildings with luxury amenities that are located near commuter transportation and in busy dining and entertainment districts.

On the multifamily side, we’ve also noted a number of demographic trends that are reshaping these markets. Cities with strong job growth and surrounding universities are gaining newly graduated residents. At the same time, Millennials – today’s largest demographic – are delaying the traditional move to suburban single-family homes, and Baby Boomers are moving from large suburban homes to maintenance-free, amenity-rich living. Across all these demographics, people are seeking housing that’s nearer to city centers, or in inner-ring suburbs with convenient access to commuter rails, so they can live where they work, dine, shop, and enjoy more entertainment options. These trends bolster the demand for multifamily offerings.

GlobeSt.com: In the value-add space, what are you focusing on in redevelopments? 

Newman: Our goal with every redevelopment is to make improvements that make sense and meet the lifestyle needs of the end user we hope to attract. For office redevelopment, many of our changes focus on adding common amenities that enhance the community feel of the building, such as upgraded fitness centers and bike rooms, dining and gathering spaces, and indoor-outdoor tenant lounges. We also look at how we can add to the streetscape of the neighborhood and draw retailers that will be a destination for our tenants and the community.

On the multifamily side, we’re doing things such as upgrading units with “smart” features such as programmable thermostats and lighting that can be operated with a wireless hub like Amazon Alexa. We also look at how to improve common space to be well designed and functional, offering areas where residents can work or socialize outside of their individual units.

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