Named one of Florida’s most influential businessmen by the Florida Trend, Jeff Klotz founded The Klotz Group in 1995. Under his leadership, they have grown into a comprehensive, full-service vertically integrated private equity investment platform with thirteen wholly owned yet separately operated subsidiaries performing every vital aspect of the investment lifecycle inhouse. Klotz has completed over 40 ground-up development projects, bough/sold over 100,000 multifamily units, and sponsored or co-sponsored over $5 billion of invested assets. At its peak, the company employed over 1,100. Jeff’s background is deeply rooted in real estate, and he holds various real estate related licenses, including being a registered broker in multiple Southeastern states.
What has been the biggest motivating factor to do what you do?
I see my role as the leader of The Klotz Group as a daily challenge to explore my and the team’s full potential. There is no greater motivation than doing what you were created to do and fulfilling your true purpose in life. With that mindset, there are no other options or considerations. Seeing something being built from the ground up, creating value for stakeholders, investors, employees, and the communities in which they serve, has also been a huge motivator. The challenge of navigating the complexities of business and real estate development and team building keeps me engaged and knowing that I am in the right place at the right time doing what I was meant to do keeps me committed to pushing ourselves to reach new limits.
What are the key factors contributing to lag between home price and rent price movements?
Increasing home prices usually indicate increased demand. When single-family rental (SFR) home purchase prices increase, so do their rental rates. This increase in both SFR home prices and rental rates creates more demand for multifamily rentals, putting upward pressure on multifamily rental rates. However, this doesn’t happen simultaneously; the increase on the multifamily side lags a bit. Rent prices soften or market conditions change when supply catches up with demand. It’s a simple supply and demand equation. When supply starts to meet demand, rent pressure softens. When supply exceeds demand, rent rates decline. Its cyclical in nature and often follows the text to a tee.
What project(s) have you worked on that has given you the most satisfaction?
While I’m proud of all the projects we’ve worked on, it’s difficult to single out just one. Every project presents unique challenges and opportunities, and the satisfaction comes from getting past them and seeing the end results while often accomplishing what others said couldn’t be done. I am looking forward, however, to seeing the iconic Morocco Shrine Center – where I saw Nirvana play in 1993 in Jacksonville – become the mixed-use development we envisioned. The project will comprise over 1,100 residential units, 250k SF of commercial space, a hotel, dining, nightlife and entertainment in a walkable TownCenter setting. Another project is The Reef that, to date, is the largest luxury apartment development built in Jacksonville since the 70’s. One of the standout features is the stunning 17,000-square-foot two-story modern glass and steel clubhouse, which holds the title of the largest of its kind in Northeast Florida.
The Harbour is another project in the works at the Moody Bellinger Shipyards, also in Jacksonville. We plan to transform the former shipyard into 560 residential units with a waterfront hotel, shops, dining, nightlife and entertainment. All overlooking a 650- slip marina. While I call Northeast Florida home, we are proud to also be working on major projects in the Carolinas, Georgia and throughout the rest of Florida as well.
What do you see in the future for Jacksonville’s multifamily development?
Jacksonville is a dynamic market with a lot of potential. I believe we’ll continue to see growth in the multifamily sector there, driven by population growth and economic development.
Looking ahead, what is your vision for The Klotz Group in the next 10 years?
Our vision is to be relentlessly known and respected as the dominant, full service, vertically integrated private equity real estate investment platform in the market – setting the standard for innovation, performance, and impact in everything that we touch.
Are there other projects or initiatives you’re particularly excited about?
While we’re always exploring new opportunities and initiatives and we’re always focused on strategic growth and identifying markets with strong fundamentals, today we find ourselves in a unique market which is both suggestive and attractive for major growth. After being a net seller of real estate over the last ten plus years, the ability to regrow the portfolio in today’s market is one of the most exciting initiatives we are currently working on.
What would you tell your 18-year-old self?
I would tell my 18-year-old self to be persistent, to embrace challenges as learning opportunities, and to always prioritize building strong relationships. Also, never stop learning and adapting to change.
Visit their website: https://theklotzcompanies.com.
