| 4/23/2006: Melaver Inc., a third generation business |
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Savannah Morning News Melaver Inc., a third generation business, strives to be both environmentally conscious and economically sound. Sunday, April 23, 2005 Savannah Morning News By Eric Curl In 1940, Annie Melaver, and her husband, Isidor, opened a small grocery store on the corner of Mercer and Hall streets. Over time, the Melaver's children, Norton and Millicent 'Millie', took over what became the M&M Supermarkets grocery chain. Now with Norton's son, Martin , at the helm, Melaver Inc. has evolved from a regional grocery store chain to a successful development and property management company handling projects in excess of $100 million while breaking new ground with its commitment to sustainable development. Millie Melaver, former vice president of M&M Supermarkets, said the company's success stems from innovation and action. 'We had a policy,' she said. 'You either grow or you go.' In 1948, Norton Melaver took the first major step toward growth when he and his mother opened the full-service grocery store on Habersham Street where the downtown Kroger's parking lot is now. The expansion continued with the addition of M&M stores in Thunderbolt, Wilmington Island and Garden City. From merchants to developers Now serving as the secretary of the company's board of directors, Millie Melaver said the transition away from M&M Supermarkets occurred when they sold their business to Kroger in 1985 but retained the properties. 'All of the sudden, we're in the real estate business - not exactly by choice,' she said. Norton Melaver, who founded the M&M chain with his mother, is now the president and chairman of the board. He said his children became involved after the chain was sold. At first, he said the family didn't know what direction they wanted to take. 'It took several years before we arrived at the decision to be a sustainable development company,' he said. "Now, when I say we do 'green' development, I feel very proud.' CEO Martin Melaver described the time it took the family to figure out what direction it wanted to take as a '12-year meditation.' He said they knew they wanted to run a company that focused on social and economic impacts as much as profits, but they weren't sure how. In 1999, the U.S. Green Building Council established the Leadership in Energy and Environmental Design rating system, providing the guidelines the company needed. Now, approximately 80 percent of Melaver's staff is LEED accredited, Martin Melaver said, giving the company a 'common vocabulary' to work with. Melaver Inc.'s development philosophy has earned the company numerous awards and recognition. On April 19, Melaver's employees received notification that Abercorn Common received a silver LEED Core and Shell certification, making it the first shopping center in the country to do so. Environmental features include a cistern that harvests rainwater for irrigation; waterless urinals; energy efficient heating and air-conditioning systems; and a white roof coating that reflects heat. Southface, an Atlanta-based environmental nonprofit, recently awarded Melaver Inc. the Argon Award for Success in Sustainability. The award recognizes Georgia-based companies for their commitment to environmental stewardship. Last May, the U.S. Green Building Council awarded Melaver Inc. the LEED certification for its renovation of a historic Whitaker Street building, the first LEED certified building in the Southeast. Green economics Being green isn't Melaver Inc.'s only goal, according to COO Colin Coyne. The company's employees haven't forgotten they are running a business. 'We are unapologetic profit seekers,' Coyne said, adding that Abercorn Common rent rates have doubled in the course of building it up. Coyne said one of the common misconceptions is that building up to LEED specs costs more. He said that's not the case. They just choose to invest in less-traditional features. 'Where others chose marble columns, we chose porous pavement,' Coyne said. While the cost-saving elements such as reduced energy and water bills are passed on to tenants, Coyne said Melaver Inc. ultimately benefits as well. The savings attract businesses to their properties and provide an incentive to pay more in rent, Coyne said. Thomas Bisacquino, president of the National Association of Industrial and Office Properties, agreed that green building practices are economically feasible. 'The cost has decreased tremendously over the last 10 years,' Bisacquino said. 'It can be as little as 2 percent premium, and a lot of that is recouped in energy saving.' Bisacquino said he has seen 'tremendous interest' from many of NAIOP's 13,000 members towards the practice. Last fall, the NAIOP named Corporate Office Properties Trust (NYSE:OFC) its first national Green Development award winner for the sustainable attributes of a four-story, 125,000-square-foot office building in Maryland. 'We think (sustainable development) is socially responsible,' Bisacquino said. 'And from a financial point of view, green building is getting to the point it's equal to and in some places less expensive than using traditional methodologies.' A longer vision One of the benefits of being a private company is that Melaver Inc. doesn't have to base its business decisions on short-term quarterly results, according to CFO Denis Blackburne. 'We can take a much longer vision,' Blackburne said. 'By not having to fight the market, you can take a common-sense approach.' This long-term approach has garnered Melaver Inc. 18 properties throughout the Southeast with a value in excess of $108 million, said spokeswoman Vivian Rahn. The company also has 13 LEED projects in development, comprising of about $1.2 million square feet with a market value of approximately $250 million. Current Savannah projects include a 16,000-square-foot outparcel to the Abercorn Common center that is expected to be complete in June. The $3.4-million project will feature similar environmental elements as well as a "living" roof system comprised of plant-life. In addition, Melaver Inc. is developing a three-story office structure with 20,000 square feet of retail and restaurant use. The $15-million mixed-use development will complete the Abercorn Common development and is expected to be open in late 2007. Martin Melaver said the future developments will demonstrate that they have learned from their prior LEED projects. 'We're going to raise the bar on our use of sustainable development,' he said. 'Phase two (of Abercorn Common) will be like phase one on steroids.' Ultimately, Martin Melaver said the decision to be a progressive and environmentally responsible company is in his DNA. 'Melaver has a legacy of 65 years in the community,' he said. 'You don't want to mess with that.' Join the celebration Melaver Inc. will host an unveiling ceremony at 3 p.m. Thursday at the Abercorn Common, the first shopping center in the country to receive silver Leadership in Energy and Environmental Design Core and Shell certification from the U.S. Green Building Council. The event will include prizes from participating tenants, self guided walking tours and educational exhibits, and shopping specials. To find out more about Abercorn Common, go to www.abercorncommon.com |