Joseph Pappalardo Sr. started out in commercial real estate in the early 1970s and took a hit for the then New Orleans.
In the late 1980s, when oil prices plummeted and the market dried up, he diversified away from the brokerage business and joined Robert Merrick, the owner of Late & Blum, creating the latter & Blum Property Management. Shopping centre.
In the next few decades, Paparard grew the management company and eventually left the latter and Blum, but he retained the old name until 2023, when it was rebranded as Rampart/Worth Holding.
Earlier this month, Paparard returned to his roots in a way when Rampart/Wurth bought the compass from commercial brokerage Nai/Late & Blum | real estate giant Compass. The Compass acquired the latter and Blum last spring.
The agreement runs Rampalard/Wurth, whose son, Joseph Pappalard Jr., and Principal Michael Ricci, the state’s largest service and commercial real estate company, with over 100 agents and a list of 1,000.
In this week’s conversation business, Paparard explains why he wants to expand his company’s footprint when commercial real estate is being squeezed by stubborn inflation, interest rates and premium expansion.
The interviews have been compiled for length and clarity.
Why did you want to buy Nai/Latter & Blum from Compass?
All competitors managed and managed, operating as a division of the latter and Blum, but their capabilities also did not go anywhere to the interests or committees of the brokerages. did. As a result, every time I bid on a management assignment, I couldn’t discount it because there was no commission from the brokerage or anything that the lease committee had won. I always felt at a disadvantage compared to my competitors, but as it was like a sister company, I didn’t want to stand up to the latter and Blum.
When did this transaction come together? Was this the work Compass bought the latter and Blum last year?
no. However, they heard they might want to sell it late last summer, so they contacted them in the early fall. It took about six months to get together.
Who is your competitor now?
Corporate Realty, SRSA, Sterling, but they tend to do more offices and retail. Our specialty is our specialty. Our plan is to continue supporting apartment complexes, expanding it as much as possible, and expanding our commercial portfolio.
Want to expand geographically?
yes. We already work in Alabama, Arkansas, Texas, Mississippi, and are licensed in Georgia and have been working there for a long time. We want to continue expanding that footprint and we believe there will be an opportunity to bring brokerage services to those markets.
Isn’t it difficult when you have a new name, Rampart/Wurth, not well known in other states?
The latter and Blum’s names are strong, but in fact, it’s not that much in New Orleans, and elsewhere in the state. When we rebranded Rampart/Wurth, we didn’t lose one client or miss one beat. And now, the Rampart brand is beginning to acquire steam and is beginning to be recognized. I don’t think there will be any difficulties for securities companies that do not have the NAI/Latter & Blum brand. In real estate, what matters is relationships and when we win Nai/Later and Blum, we get the best agents in the state.
Over the past two years, everyone in the real estate sector has lamented the worsening insurance crisis, in addition to higher interest rates and sustained inflation, especially in the state. Isn’t this a dangerous time to enter commercial property?
These are undoubtedly the issues, but I have noticed improvements in market activity since the election. This is typical. More people are expressing their interest in acquiring real estate or acquiring property on a list. Insurance is in danger, but there are professional business governors who are hoping to see the rates get a little better and are trying to come up with a policy to keep them down.
Multifamilies are in demand because housing prices cannot be affordable for many people, but there is no land to build in New Orleans, and they are constantly opposed to new multifamily developments in places like St. Tammany. It’s there. Where are the opportunities out there?
Due to construction and insurance costs, it would be difficult for everyone to develop multi-family homes at labor, market rates. New Orleans is an island. Therefore, it must be on the North Shore or beyond the spillway. We are not Houston or Dallas. It’s a shame if young people can’t afford a house, they don’t have the option. But it also created a lot of demand for the multi-family property there. Last year, Nai/Latter & Blum | Compass’s best performance category was in apartment complexes, which sell for multifamily.
How about retailers? Is there a future in the age of e-commerce?
Many people shop online for convenience, but we don’t just buy online and want it to fit, but what people see, touch, or feel. I think we’ve reached the point we want to go back to. I think retailers will recover to some extent. Online shopping will have a lasting impact on retailers, but people are always hoping to see the high-end stuff and always want an in-person shopping experience.
