On November 14th, ULI Philadelphia Young Leaders will host the second annual Shark Tank.  We asked Melissa Govette to share some insights and why he is excited to return as moderator.

ULI: What do you look forward most about this year’s Shark Tank event?

The Philadelphia development scene is amazingly innovative, constantly pivoting to meet updated demands of the market.  Looking forward to hearing more about the Sharktank deals as they provide a window into the future of Philly’s skyline!

ULI: Which are Philadelphia’s hottest neighborhoods for development, urban or suburban, and why?

In the surburbs, the hottest markets are highly walkable, close to transit and evoke a “neighborhood feel”.  It’s interesting that the hot suburban markets now look like replicas of city neighborhoods.  Not so long ago, the suburbs were about 2 story foyers, wide open spaces and big backyards.  Now, it seems like buyers are willing to give a little on those in favor of convenience.  Families want to be able to walk to their favorite pizza place.  Couples are looking to enjoy date night at the corner BYOB place and bump into their neighbors for a quick catch up as they stroll home.  People want to spend less time getting to and from the places they go and more time enjoying those places.  As a result, proximity to a train station, restaurants, and convenience retail are all key.

ULI: What factors matter most when you evaluate a prospective Project / Loan / Equity Investment? 

In looking at a lending opportunity, we focus on sponsor first and project second.  If we’re lending to a solid sponsor, any project can withstand unexpected hurdles. What makes a solid sponsor? Those who have deep experience in the business, a proven track record, are well-capitalized given the risk in their portfolio and have a good reputation in the industry.  With regard to the project itself, an answer to this question can easily get weighed down in industry metrics:  Debt Yield, Loan to Cost, HVCRE regulations, DSCR, LTV.  And those metrics are very asset-class and project specific.  Broadly, our thinking is not complicated.  The proforma assumptions have to make sense given today’s market and the amount of equity in the deal should match the risk of the project.

Melissa Govette Biography

Melissa Govette is a Senior Relationship Manager with M&T Bank and has 15 years of experience in commercial real estate.  She has expertise across all asset classes with a focus on construction, redevelopment, bridge and permanent loans. Ms. Govette serves on the executive board of Spark, an organization dedicated to mentoring Philadelphia middle school students, and on the advisory board of the Urban Land Institute-Philadelphia Chapter.