Wilbur Breslin describes how a little entrepreneurship and a solid vision can go a long way in the commercial real estate business.

In 1953, Long Island was a checkerboard of potato farms dotted with one-family homes, and Wilbur Breslin was a young entrepreneur looking to make a little cash. He and his partner opened up a residential real estate office not much bigger than a garage, and after 12 years, they owned 450 houses. But Breslin was itching to move onto bigger and better things.

Wilbur Breslin

“We found we were more than capable of handling it all, and by controlling all aspects of the process, we are able to complete projects more efficiently. The end product is important to us because we are not flippers or sellers; we are keepers. We want to know that that product meets our specifications inside and out because we are in the deal for the long term,” said Breslin.

Although many real estate developers tend to sell a property once it is finished, Breslin Realty likes to keep its cards on the table. “It’s more profitable in the long run,” said Breslin. For example, if a developer purchased a shopping center for $2.5 million, spent $2 million fixing it up, and sold it for $10 million, the net profit would be $5.5 million (which, after taxes, would probably be more like $3 million). But, if a developer bought the same property, kept it for 10 or more years, and financed the property with a $25 million mortgage, the difference between the initial investment and the mortgage is tax-deferred gain. “You don’t have to think too hard about which scenario you’d rather end up with,” Breslin chuckled.

Lessons from retail
Growing up, Breslin got a taste of the retail industry watching his father run a farmer’s market. There, he learned that the customer is number one, and that lesson has followed him throughout his real estate career. “The tenants come first. We have to learn exactly what their needs are so we can service them appropriately,” Breslin said. Because of this mentality, at least 95% of Breslin Realty’s business is repeat.

Once a property is developed, Breslin Realty’s property management department goes to work maintaining an aesthetically pleasing, clean environment. In fact, parking lots are cleaned on a daily basis. “There is absolutely no reason our properties shouldn’t be in tip-top condition at all times.” And using only the finest building materials doesn’t hurt its customer retention numbers, either. “We don’t buy products because they are cheap—we buy them because they are the best, and when something better comes along, we upgrade,” said Breslin.

Breslin Realty’s first-class facilities and customer service has enabled it to grow beyond its original Long Island footprint into New York, New Jersey, Pennsylvania, Connecticut, Mississippi, Louisiana, and Nebraska. “Our business is made up of tenant relationships, and some of our national clients have asked us to service them in different parts of the country,” said Breslin, adding that Breslin Realty hires local companies to perform general property maintenance, and property managers visit each location about once a month.

Problem solving
Over the years, Breslin Realty has created a name for itself as a problem solver. Breslin recalls one of his first ventures was a grocery store, for which he needed to purchase land from a retired farmer. The farmer resisted tooth and nail, but after much persistence, Breslin finally struck a deal: in exchange for the property, Breslin would hand deliver a check for $25 in groceries every Monday morning for the rest of the seller’s life (in addition for the asking price of $185,000 per acre). The property is still profitable today.

The company’s problem solving skills have come in handy in recent years with the development of a shopping center in Farmingdale. Once owned by Polytech University, the property was riddled with problems from the beginning—locals were concerned with the aesthetics of a shopping center, the adjacent airport wanted to swap 5.8 acres of land, and red tape held up the project for more than two years.

Breslin Realty’s reputation for developing attractive properties appeased the townfolk, while keen negotiating skills were required to iron out the red tape. Most important, especially for the Farmingdale project, was the company’s willingness to cater to civic associations. “We talk to them about their issues and problems and map out how we plan to address them. If we can’t come up with a compromise to satisfy them, we go home.”

Parking priority
According to Breslin, choosing a site means more than keeping an eye peeled for accessibility and meeting the tenant’s demographics requirements. Breslin noted that contemporary parking (within 350 feet of a store front) is a must-have today. Even if a location has space for 1,000 parking spaces, if they are located at the back or sides of the store or in a parking garage, customers are not drawn in.

“In the old days, the downtown areas had a lot of metered parking and parking garages, and I approached local politicians with the idea that they should all be demolished. They looked at me like I was nuts,” said Breslin. After 25 years, he had the opportunity to prove that his idea would work. Breslin Realty completed a shopping center project in 2001 in the village of Hempstead, which had been deteriorating for more than 50 years. Most of the stores were boarded up, and the ones that were left did not attract adequate shopper traffic. In total, the area netted $1.2 million in revenue yearly. Breslin Realty demolished 21 buildings, the equivalent of 1.3 million square feet, and replaced them with a mere 300,000 square feet of retail space. Within months, the area’s revenue skyrocketed up to $11.1 million and is expected to grow to $22 million in five years.

How? “We changed the infrastructure and made it accessible. The stores are located at the back of the property, while parking is available in the front, making it a more attractive destination for shoppers,” said Breslin. In addition, every inch of the shopping center is rented by top-notch national companies, whereas previously, it did not have one national tenant. “Like I said, it doesn’t matter what the property costs or where it is located. With the right vision, we can create value,” Breslin concluded.