Raising Visionary New Developers: Joe Molinaro’s Story

MARKET INSIGHTS

October 7th, 2024

Joe Molinaro’s Story

“I’ll be honest, I don’t usually do this stuff [case studies]. I don’t like this stuff. I’ll tell you — I’m only doing it because of how Bowery held my hand through this project when they could’ve let the hand go.”

—Joe

Backed by a diverse and successful business history, Joe’s property development journey began in 2016 when he received the permits for luxury apartments in East Melbourne.

After some delays sorting through pre-construction requirements, Joe secured funding through a Large Australian Financing Company (let’s call them LAFC). However, he quickly encountered issues with protection work notices when a neighbour’s refusal to sign off on the work delayed the project by 18 months. As a result, LAFC expressed concerns about the project’s timeline and the maturity of the loan…

Securing funding with Bowery.

A critical connection.

During this challenging period, Joe connected with Steve Kyriazis (Bowery’s Executive Director) through a mutual friend. The friend — a seasoned and successful developer — was a trustworthy and reliable reference who confidently recommended Steve, saying he’d only ever had positive experiences.
The connection came at a crucial time — just as Joe needed to refinance his project. When Steve introduced Joe to the Bowery team, we sat down to strategise the project’s next steps and promptly struck a deal to finance the project.

A sharp multiple-business owner.

Joe’s business journey was marked by creativity and a knack for identifying opportunities. His diverse ventures, innovative ideas, and strategic vision highlight his ability to adapt and thrive in various industries. These attributes, along with his outstanding business acumen, are just some of the reasons we found him to be a solid counterparty.

Joe began his entrepreneurial career in the fresh produce industry.
Transitioning into hospitality, he opened The Commune Café Bar in East Melbourne, which became a big success.
This led to the establishment of additional cafes and eventually a coffee roastery (Roasting Warehouse) that supplies 400 cafes.
He opened his first gelato shop, Augustus Gelatery, five years ago — and rapidly expanded to 37 stores, with an additional five set to open this year.
Joe is also involved in the stone and marble industry. He plays a key role at Aldo Brodic as a consultant, providing honest advice and tailored solutions to their clients.

Since Joe empowers every business he touches, it’s no surprise that we were excited to start a partnership with him.

Surrounded by a strong and supportive team.

Not only were we drawn to Joe, we were impressed by the strong network and supportive team he’d surrounded himself with for the project — a team we wanted to be a part of.

Luxury Residential Architect Rob Mills was crucial in bringing Joe’s visions to life while Gallagher Jeffs provided vital project assistance, ensuring smooth operations. Luxury Builders, PRM Construction, are known for their reliable, high-quality work throughout Melbourne, ensuring the development was built with expert precision. A special mention goes to Tony, Joe’s Project Manager in the building game, whose support and dedication proved invaluable.

Transparency breeds confidence.

Understanding the project’s delays, we were thorough in our due diligence. Despite these challenges, we remained supportive and committed to funding the project, demonstrating a strong partnership, flexible funding, and a willingness to navigate the complexities involved. We believed in the project’s “why” and its promising East Melbourne location, and appreciated Joe’s transparency on the project’s challenges.

Plus, Joe’s business acumen spoke for itself, and the team he’d curated for the project was outstanding.

“Usually what happens is, funders get a bit wary when there’s a delay and they sort of stay away from it [the project]. But, they [Bowery] were very good in the way they approached the project. Even though they knew it was delayed, we struck a fair and simple deal with Bowery.”
—Joe

Creating better together.

Extending the loan during challenging times.

Throughout the project, Joe kept us informed and aware of the delays. He recalls a particularly challenging day when he came to our office to discuss the possibility of extending the loan. Present at the meeting were key members of the Bowery team, including Matt, Steve, and Ali.
Joe described that the experience could have been daunting — akin to facing a jury — given the project’s delays and his uncertainty about securing additional funding. But because it was Bowery – it was far from it. Everyone remained honest and solutions-focused, demonstrating the ongoing collaboration and flexibility between Joe and the Bowery team.

We readily agreed to renegotiate the terms and extended the loan term—something most funders, including LAFC, were not willing to offer.

“The outcome was positive and fair”.
—Joe

True partnership.

In reflecting on the project with Joe, he identified three qualities he admires in Bowery — particularly in an industry where many individuals do not always act in the best interest of the project or its stakeholders. Bowery’s honesty, fairness, and true partnership resonated with Joe, and he appreciated our open, honest communication throughout the project. Safe to say, the feeling was mutual.

“One thing I must say about Bowery: if you’re open, honest, and communicate, they will do everything needed to finish the project.”
—Joe

Timely payments.

Joe appreciated our timely payments, made within 7 days (ahead of the industry standard which is 30 to 40 days). These timely payments ensured smooth financial management, helped the builder (PRM Constructions) with cash flow, and meant Joe was able to plan ahead knowing the money would be available as promised.

“One thing I must say about Bowery: if you’re open, honest, and communicate, they will do everything needed to finish the project.”
—Joe

Available 24/7.

Joe also highlighted Bowery’s exceptional commitment to the project, particularly regarding communication, with team members like Ali being available 24/7. For instance, Joe received a late night email from Ali addressing a stumbling block in the project, showcasing our team’s dedication.

“Another thing is that they’re twenty-four seven — which is not normal. For example, last night, I received an email from Ali at 11:17pm!”
—Joe

Supporting the best new developers.

The East Melbourne project is currently at the lockup stage. Being his first development, Joe acknowledges the steep learning curve he faced, comparing it to jumping from playing under-15s football straight to the senior grand final.

“Imagine you’re playing Under-15s football, then you go straight to the Senior grand final. That was me. I went straight into the deep end — into the ocean — not knowing how to swim. And I’ve learned so much thanks to Bowery. Would I do another development? Yes.”
—Joe

A positive outlook.

Despite the challenges, Joe remains philosophical and positive about the outcome, viewing the project as a key learning experience. He understands the complexities and realities of large-scale developments and appreciates Bowery’s willingness to support the project through the hard times. Joe values Bowery’s commitment to seeing the project through to completion, knowing that other funders probably would have walked away.

Start your own project with Bowery.

Are you an ambitious developer looking for a reliable funding partner? We understand the complexities and hurdles of property development and are committed to supporting you every step of the way, just like we did with Joe. Here’s what you can expect:

A genuine, supportive partnership: We stand by you through challenges, providing the financial support you need, even when conditions are less than favourable.
Transparency & fairness: Our commitment to open and honest communication ensures you’re always informed.
Flexibility: We offer flexible financing solutions tailored to your project’s unique needs, helping you navigate delays and other obstacles confidently.

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