Commercial Real Estate Developer Phil Procacci Discusses His Class A, 185 mph Wind-Resistant Buildings

 

 

The following article was posted to GlobeSt.com on August 25, 2011:

 

 

Above: Phil Procacci, CEO and co-founder of Procacci Development

 

Six Questions for Phil Procacci

 

By Jennifer LeClaire

 

MIAMI-As Hurricane Irene approaches US shores, some commercial real estate owners may be holding their breath-and so could state-run insurers. If Irene stays on course, it could become a Category 4 hurricane before it hits shore. That means winds of at least 131 miles an hour will battle buildings there.

If the buildings are built by Procacci Development, though, they might beat the storm. Procacci class A office buildings are built to withstand winds up to 185 miles an hour-a Category 5 hurricane. But the fact is most buildings along the eastern seaboard are not up to that par.

GlobeSt.com caught up with Phil Procacci, CEO and co-founder of Procacci Development, to discuss his thoughts on hurricane-resistant office development, why it’s so vital in this hour, and why more developers aren’t taking this route despite the devastation of hurricanes like Andrew and Katrina.

GlobeSt.com: Why did Procacci get into this niche of hurricane-resistant office development?

Procacci: After hurricanes Charley, Frances and Jeanne, I saw the devastation major storms can cause businesses. I realized the need for a different kind of office building that would protect tenants from the damage of a major hurricane. I felt that there was a market for an office building where people wouldn’t have to worry about whether their business would be impacted. I also wanted a competitive advantage that would separate Procacci from other office developers.

GlobeSt.com: What does a true Category 5 hurricane-resistant building look like?

Procacci: A building constructed to withstand a Category 5 hurricane looks like almost any conventional office building. The difference is in the engineering needed to withstand winds of 155 miles per hour.

GlobeSt.com: And how do you accomplish that goal? What makes the difference?

Procacci: We use more steel and stronger connections in the tilt-wall panels. The glass and frames that hold it are larger and stronger. We use a structural concrete roof that can withstand the wind uplift of a Category 5 storm. We also use a sprayed-on polyurethane roof system that’s warranted against wind uplift of any speed. Air conditioning units are strapped down and, like the building, are protected from wind and flying debris.

Penetrating the building envelope is when the real damage arrives. Water infiltration, followed by days or weeks with no power or air conditioning, allows mold to set in right away. That’s why generators are an important feature of our buildings. We represent to our tenants that they’ll be up and running with power, lights, computers and A/C the next day with redundant generators that can run 20 days without refueling.

GlobeSt.com: Are most Florida office buildings ready to withstand another Category 5 hurricane?

Procacci: Less than 1% of Florida office buildings are able to withstand a direct hit from a major hurricane. Code calls for protection from a Category 4, but the wind damage and force difference between the two is geometrical. Think about it, pre-Andrew-which is the way we look at code here-we had thousands of office buildings in the tri-county area. Since Andrew, we’ve built several hundred. So the vast majority meet a much weaker code.

GlobeSt.com: Are the parameters around what makes an office building hurricane-resistant, or the technologies to empower the construction, still evolving?

Procacci: The technology, expertise and materials needed to build hurricane-resistant buildings are available. What is evolving is how developers design buildings and employ that technology in a way that makes construction economical.

GlobeSt.com: Is there a demand for this type of construction in South Florida?

Procacci: There’s not much of an appetite on the developer’s side to spend the extra money to harden their buildings, and on behalf of the developers, they don’t feel there’s a willingness on the tenant side to pay for that level of protection.

Our experience has been that there is a market, especially for those industries governed by statute or regulation to remain operational, like financial services, or those that by sheer necessity, like insurance or call centers or other businesses, cannot afford downtime. Many businesses also are realizing the need to have IT and data centers that are protected and always on-no matter the threat or outcome of a storm. The proof, to us, is in the occupancy rates. Our portfolio at Crossroads at Dolphin Commerce Center in Miami Dade is 99% leased. We believe there is a market where tenants see the value in being prepared for any hurricane.