When the going gets tough in the real estate world, family offices and investment firms alike turn to Dair Development.
Founded by Brian Flanagan, an experienced real estate professional who is part project manager, part consigliere, Dair Development, takes a hands-on approach to building and repositioning major assets in New York, New Jersey, and Connecticut. Whether Flanagan and his team are managing construction projects or fielding late-night phone calls, they’re always working to deliver value for their clients. The Real Deal sat down with Flanagan, who once served as special adviser to the New York City Council under the first Bloomberg administration, to learn how he turned Dair into a leading full-service development company since its launch three years ago.
A Full Service Firm
Flanagan sees his New York-based team of eight as smart, entrepreneurial real estate professionals who can pick up the phone at any time to field a variety of questions.
“The goal is to be incredibly client focused, and to build that trust over a number of years with groups, whether they’re super-high net worth, family offices, investment firms, or lenders,” he says.
“We’re here to provide whatever they need, whether it’s to be a sounding board about an investment or to advise over concerns about an operating partner or help execute a project.”
More than just a one-size-fits-all partner, Flanagan put together an experienced team who could advise and assist throughout the entire development process, no matter the client’s particular needs. Dair is designed to be able to fit a client’s specific needs, from working in an advisory capacity to serving as a principal developer for an investor client to even investing alongside a client.
“We are not a capital allocator or a lender, but if the client desires us to invest to align interests, we have the ability to do that,” Flanagan says. “We have found this is especially important where clients are relying on us to play a key role in the development and execution of a business plan.”
Asset Repositioning in the Age of Remote Work
One area of recent focus has been working with clients to reposition flailing office assets into residential properties. Flanagan told us about a client who owned a small mid-block office building in Midtown South for decades.
“Historically, the building has always stayed full and performed well,” he says. “The pandemic hit, leading many tenants to transition to a hybrid or work-from-home model and not renew their leases. The building now sits largely vacant. We are helping them look at alternative strategies, including conversion to residential, with the goal of making it into a stable asset for the family for decades to come.”
Ross Koehn, Dair’s Vice President of Development, situates office-to-residential conversions within a larger trend that he and his team are observing throughout the tri-state area.
“We are extremely bullish on multifamily around New York City,” says Koehn. “As remote work took off, people moved further away from the city. We expect multifamily to continue to perform well in these markets due to the work-from-home and hybrid work model.”
By keeping their finger on the pulse of the market, the Dair team is able to provide clients with valuable insight and guidance as they navigate ever-changing market conditions.
A Growing Portfolio
18 Dock Street is Dair’s biggest project to date. The 395-unit, 675,000-square-foot luxury high-rise replaces dated industrial buildings that were being used as furniture showrooms. The complex, which is located several blocks away from the Stamford Metro North Station, is nearing completion and anticipates occupancy in the spring. It will include retail and high-end amenities such as an outdoor pool, sports simulators, a movie theater, and a dog-grooming station.
Dair was brought on initially to handle feasibility studies and financial analysis, and eventually retained to assist the Owner in the effort to rezone the property, gaining site plan and permit approvals, and managing the project’s design, and construction.
Dair works frequently with Northwind Group, a lender and debt fund manager , including as their construction loan consultant at 125 Greenwich St., an 86-story luxury Lower Manhattan condo development. They were also brought onboard by Northwind as consultant for their loan on 622 Summit Avenue in Jersey City, N.J., one of the largest residential towers under construction in Jersey City.
“We’re an adviser,” says Flanagan of Dair’s relationship with Northwind. “Our role is to help everyone–lender, borrower and investor–ensure that the project runs smoothly and construction is completed successfully.”
Dair also works with Parkview Financial, a lender specializing in bridge and construction finance, advising and supporting the operating partner in completing the conversion of the Hudson Hotel near Columbus Circle into 440 apartments.
“Our unique ability to provide a wide range of services to lenders, equity investors, operating partners, and property owners sets us apart in the industry,” concludes Flanagan.
Learn more about Dair Development’s suite of services here.