Business

Coffee Break: Andrew S. Hochberg, CEO and managing principal at Next Realty

Posted May 07, 2023 1:00 am

Andrew S. Hochberg

Chief Executive Officer and Managing Principal

Next Realty, LLC

5215 Old Orchard Road, Suite 880, Skokie, IL 60077

(847) 881-2000

www.nextrealty.com

Industry: Commercial Real Estate

Number of employees: 22

Age: 60

Family information: Married to Laurie, a noted North Shore pediatrician; father to four children

Hometown: Highland Park

Q: Describe your company.

A: Next Realty is a private real estate investment and management firm which over the course of its 25-year history has made more than $675 million in investments across the country, with an emphasis on the Chicago-area marketplace.

We own and manage retail and flex office assets in approximately one dozen Chicago and suburban markets, including Arlington Heights, Barrington, Lincolnshire, Lombard, Niles, Schaumburg, Vernon Hills and Wilmette.

Q: Do you plan to hire any additional staff or make any significant capital investments in your company in the next year?

A: Over the course of 25 years, we have developed a great, extremely talented team with outstanding longevity. If a great "draft pick" or "free agent" becomes available, we will add to the team as we continue to execute our multi-solution strategy on behalf of our investors.

Q: What will your company's main challenges be in the next year?

A: As a real estate fund manager, our life-cycle stages include raising money from investors, acquiring properties, managing each property in our portfolio according to its individual business plan, and ultimately, selling those properties for the benefit of our investors.

While each stage is important, finding enough new investment opportunities that meet our standards, in any environment but especially under the current economic climate, is always a challenge. It's also a great motivator to be creative in our evaluation of prospective deals.

Q: What's the hottest trend in your industry?

A: Given current economic and market conditions, pessimism seems to be one of the hottest trends. We don't subscribe to that kind of negativity. In the long term, more things work out than don't, especially if you are patient and well-capitalized.

Q: If you had one tip to give to a rookie executive, what would it be?

A: I would remind the rookies the same things that we remind ourselves: Practice patience and remember that location, liquidity and luck are key factors to success. Bad things can happen to good properties, so be prepared for bumps in the road and also be alert to unexpected opportunities. Approach each opportunity as a puzzle to complete. Be open-minded about potential solutions.

Q: Do you have a business mantra?

A: At Next Realty, we actually have two mantras:

Patient Agile Diversified! This addresses our overarching philosophy. We strive to practice patience, because producing results at almost any stage in a property's life cycle takes time, regardless of how quickly you'd like to accomplish something. Agile addresses the fact that we have to be ready to pivot; to expect the unexpected and to be able to move quickly in any situation. Finally, we aim for diversification, by property type and geographic location, to minimize risk and avoid being too vulnerable to the market pitfalls in a single sector or geographic market.

Another mantra is We Buy! We Buy! We Buy! Per an earlier response, we are always looking to source new acquisition opportunities and deploy investment capital. Even in this challenging market, we actively pursue investment opportunities.

Q: From a business outlook, whom do you look up to?

A: My wife - she has quietly and methodically become the best clinical pediatrician in Northern Illinois.

Q: What is one interesting fact about you or your company that most people may not know?

A: I came up with the name of the company - Next Realty - after friends, colleagues and business associates asked what I was going to do next after I was CEO of Sportmart, a company my family owned. Once we sold the company, Next Realty is what came "next."

Q: Was there a moment in your career that didn't go as you had planned? What lesson did you learn from it?

A: In 1999, shortly after I had launched Next Realty, I made an unsuccessful run for Congress. The message I took away was I don't belong in politics. While I am keenly interested in public service, I realized I could make a strong impact as a volunteer lay leader in the community.

Q: What do you like to do in your free time?

A: Free time? Is there any? I do like to make sure I exercise regularly (sometimes taking calls while out for a power walk) and I always find time to play with my grandchildren.

Q: What book is on your nightstand?

A: Einstein: His Life and Universe, by Walter Isaacson. My son-in-law is a physics Ph.D., which inspired me to read more about it.

Q: What keeps you up at night?

A: Political upheaval in the United States and in Israel.

Q: If you were not doing this job, what do you think you would be doing?

A: Philanthropy has been a part of my life since I was very young and remains so today. I believe that if I wasn't leading Next Realty, I would be the CEO of a charitable organization.

Q: What was your first paying job?

A: Walking my neighbor's dog when I was in elementary school. I learned the importance of responsibility and accountability when the weather was unpleasant. But I was committed to making sure the dog had his daily walk. Somehow the puppy was less bothered by the rain, snow and cold than I was, which also provided a lesson in perspective.

Q: If you could put your company name on a sports venue, which one would you choose?

A: Stamford Bridge, where the Chelsea Football Club plays in London.