2 min read November 2023 — In an interview with Invest:, Richard Myers, founder and managing director of Realty Capital, explained why an attention to aesthetics is a core value for the firm, the importance of having a flexible approach when working with zoning regulations and how technological advancement has allowed the company to attract capital, tenants and residents.
What are Realty Capital’s plans for growth and expansion into other markets?
We are always looking for new markets, and we’re engaged in discussions with a couple of suburbs in Dallas-Fort Worth in addition to the towns where we’ve either started or completed projects. These conversations can sometimes be prolonged, because cities and suburbs often have specific ideas about what they desire. However, their vision may not always align perfectly with economic realities and market demands. Our challenge is to harmonize the city’s preferences with our understanding of what will be successful, while also considering the needs and desires of the local community, including the residents, businesses and shoppers. Bringing all these elements together and aligning everyone on a common vision can be a time-consuming process.
How do you balance tenant-desired features and amenities with the envisioned aesthetic in mixed development projects?
We’re absolutely fanatical about aesthetics. When it comes to great architecture, landscaping and overall aesthetics, we hold the belief that it doesn’t necessarily come at a significantly higher cost. Instead, it demands meticulous attention to detail, hard work and a commitment to quality. We take great pride in ensuring that the amenities we incorporate into our developments are executed with excellence. In our approach, we draw inspiration from the timeless architectural and urban planning principles that have been employed in Europe over the centuries. By following classic architectural styles and city planning concepts, we aim to create environments that resonate with people and stand the test of time.
How has industry innovations due to the advancement of technology and AI impacted your work?
One of the most critical advancements in recent years has been the integration of computer technology into our marketing materials and our vision for the community. This technology has enabled us to convey our vision in a far more sophisticated manner than was possible 20 or 30 years ago. For instance, replicating a view of the Dallas-Fort Worth skyline in the background with such accuracy would have been impossible two to three decades ago.
However, today, we can create detailed renderings of the community, buildings, street scenes and parks. In fact, these renderings can be so realistic that it becomes difficult to distinguish them from actual photographs. This is a significant departure from the past when hand-drawn images often failed to effectively communicate the development’s vision. The modern approach makes it much easier to convey the essence of our development. This is of paramount importance as we seek to secure capital and attract tenants or residents. People want to have a clear understanding of what to expect, especially when the development is not fully realized. Thus, the integration of technology has greatly enhanced our ability to communicate and make our vision accessible and comprehensible to others. This is a pivotal transformation facilitated by technology.
What specific regulatory or legislative challenges, such as zoning issues, are you monitoring that could affect your work?
In the communities where we typically undertake our projects, we diligently monitor the political landscape. The composition of city councils in these high-end suburbs can undergo rapid shifts, transitioning from a pro-growth to an anti-growth stance. We strive to adapt to working with either type of council but it can prove to be quite challenging when dealing with an anti-growth community or city council. Convincing them to support a mixed-use project with higher density, as opposed to single-family homes, is no small feat.
These council members often campaign on platforms of little to no growth, or advocating for very low-density developments. Even if they harbor some liking for our project, they might feel conflicted, fearing that supporting it would mean going against their campaign promises. This necessitates a considerable effort in education and persuasion. Effective marketing materials, such as detailed renderings and videos, play a significant role in conveying our message. Nevertheless, navigating zoning regulations remains one of our most formidable challenges.
However, it also presents an opportunity. If we can successfully secure project approvals in such challenging environments, they may act as a deterrent to less experienced developers, reducing competition in the field and providing us with an all-round favorable outcome.
What are some of the initiatives or projects that you’re excited about at Realty Capital?
We are deeply involved in the Lakeside project, located near Dallas-Fort Worth airport and nestled on the shores of Lake Grapevine. This ambitious undertaking, when fully completed, will boast an impressive $2.5 billion worth of buildings. As of now, it’s approximately halfway through its development. Our ongoing construction includes a luxury residential high-rise and we have promising plans to commence work on a hotel and office building next year, both within the same development. Additionally, the project will feature a selection of restaurants with scenic waterfront views, just across the street from the luxury high-rise, hotel and office building. The combination of these various mixed-use buildings is key to the project’s overall success, particularly when it comes to the hotel and waterfront restaurants.
We’re also branching out to Granbury, Texas, situated southwest of Fort Worth. Here, we hold a substantial expanse of land right along the lake. We’re embarking on a project that, while not as extensive as Lakeside, follows a similar approach, encompassing a diverse range of uses. We have high hopes for initiating this project next year.
And lastly, although it might not be directly pertinent to Invest: Dallas-Fort Worth, I’d like to mention that we are also involved in development projects in Colorado. Our focus in Colorado primarily centers around the mountain resort regions, such as Aspen. This is a fantastic destination to explore, especially during the ski season. It’s certainly worth keeping in mind for those who love hitting the slopes.
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