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From the Desk of Dr. Sangani

From the Desk of Dr. Sangani

Dr. Bharat SanganiAs I reflect on the past year, I’m struck by how even the smallest decisions can profoundly shape our future. The forces driving change today—AI, elections, geopolitics, medical advancements, inflation, and even wildfires—affect how we work, lead, and live our daily lives. For a CEO, every big decision is built on countless micro-decisions, each one laying the foundation for what comes next. In my roles as a business owner, physician, real estate developer, and mentor, I’ve seen how these choices come together—often in surprising ways.

What I want to share isn’t a polished success story. It’s a candid look at the realities of staying adaptable and seizing opportunities in a world where the goalposts are always shifting. Whether you’re an investor, entrepreneur, or simply curious about how big decisions take shape, this is a glimpse into the mindset it takes to keep moving forward.

Let me tell you—it’s a mix of opportunity, risk, and a constant flow of decisions, from tactical to transformational. Here are the weightiest topics that have been on my mind these past few months, in no particular order:

How Rising Rates are Shaping Commercial Real Estate
The commercial real estate sector has been pressed on multiple fronts. Interest rates remain elevated, limiting both the availability and affordability of credit. As a result, transaction volume has slowed across the board, with buyers and sellers often struggling to see eye-to-eye on asset valuations. Despite the reduced deal flow, underlying property values have held relatively steady—which speaks to the continued long-term appeal of quality assets. Still, these values are undermined by an increasingly illiquid market. Simply put, fewer transactions are taking place, and the ones that do make it over the finish line are often characterized by lengthy negotiations and conservative financing terms.

As a commercial real estate developer, navigating these conditions requires deliberate choices—choices about which assets to hold, how to structure financing, and where to direct resources. This year has served as a powerful reminder that when the waters get rough, your balance sheet becomes your lifeboat, and cash flow is your guiding compass. We may not be able to control whether interest rates rise or fall, but we can control our internal financial posture and the way we direct resources.

Cash Flow: Our Financial North Star
In an environment where credit is constrained and operating costs are on the rise, having healthy cash flow is more than just a financial metric—it’s the bedrock of adaptability and choice. One of the lessons I’ve learned through the last 25 years of navigating market cycles is that it’s not enough to simply track what comes in and goes out. I need to think strategically about vendor relationships, negotiate when possible, and maintain the right mix of debt so as not to hamper long-term growth.

I’m reminded of Warren Buffett’s insight: “Only when the tide goes out do you discover who’s been swimming naked.” In other words, when credit becomes expensive, those without a careful grip on their cash flow can find themselves exposed. I have no intention of being caught off-guard.

Building a Defensive Balance Sheet
If cash flow is the compass, then a defensive balance sheet is the sturdy hull of the ship. At my firm, Encore, we’ve spent years cultivating a stable foundation—one built on prudent leverage ratios, diversified revenue streams, and a careful eye on maturities. While we pride ourselves on making bold moves when opportunities arise, we do so with an eye toward defending what we’ve already built.

In practical terms in 2024 and through 2025, this means reevaluating debt maturities and ensuring we’re not caught by surprise if financing options tighten further. It’s no secret that rising rates translate into higher interest expenses for those with floating-rate debt, so we’ve been exploring opportunities to lock in fixed rates or refinance on favorable terms. The objective is simple: to stay several steps ahead of any potential storm, and to preserve the flexibility to act quickly if (and when) those strategic opportunities present themselves.

A Word on Healthcare Costs
Resilience doesn’t just apply to balance sheet; it applies to the well-being of employees, too. As a leader, one of my most pressing concerns is the rise in healthcare costs—a challenge that extends well beyond our own industry. Providing quality healthcare to my companies isn’t just an ethical imperative; it’s integral to sustaining a motivated, productive workforce, and deeply personal to me as a physician.

The question, then, is how to keep premiums and out-of-pocket expenses in check during a period of inflation. This challenge required a series of deliberate decisions. First, we focused on negotiating better terms with insurance providers wherever possible. Next, we accepted that, in some cases, the company would need to absorb a portion of the costs to shield employees from the full impact. Finally, we encouraged the use of generic medications, which offer the same efficacy as brand-name drugs but at a fraction of the price. Each of these choices played a role in managing rising expenses while maintaining a commitment to robust, accessible healthcare for our team.

Emerging Healthcare Solutions: GLP-1
The healthcare landscape is also on the cusp of significant transformation. One particularly exciting development is the rise of GLP-1 medications—drugs that have shown remarkable promise in treating diabetes, assisting with weight loss, and potentially reducing various metabolic risk factors. I believe we’re just beginning to grasp the broader implications these treatments may have across the healthcare ecosystem. From lowering long-term costs associated with chronic conditions to improving overall employee wellness, the opportunities are vast. It’s too early to predict all the downstream benefits, but I see a future where GLP-1s could revolutionize how we treat (and even prevent) some of the most common health challenges we face. The individual and business decisions that stem for this potential overhaul remain to be seen. But I am open, curious, and closely watching this space.

Looking Ahead
As I look toward 2025, I see a world that still holds a fair share of unpredictability—capital can suddenly become scarce and market sentiment can flip on a dime. No one can promise a smooth ride in this business, but I’ve also been at this for more than 25 years, so I know the key is carefully considered incremental decisions. For my business that means focusing on maintaining a strong cash position, a defensive balance sheet, and healthy happy employees.

The thoughts I’ve shared here aren’t about perfection or a guaranteed path to success. It’s about embracing adaptability, remaining open to innovation, and recognizing that progress often comes one decision at a time. Thank you for joining me in this reflection—and for being part of a shared pursuit of progress, resilience, and success.

Wishing you and your families a prosperous new year.
With gratitude,
Dr. Bharat Sangani

Encore Multifamily Secures $48.7 Million HUD Loan for Fort Myers Development

Encore Multifamily Secures a $48.7 Million HUD Loan for Fort Myers Development

240-Unit class-A multifamily apartment community broke ground Q4 2024, slated to deliver late 2026

(FORT MYERS, Fla.) Jan. 23, 2025 – Encore Multifamily, a division of Dallas-based Encore Enterprises, secured a $48,727,600 fixed-rate HUD Section 221(d)(4) loan for its Encore Daniels Falls development, a class-A multifamily ground-up apartment community located in Fort Myers, Fla. The 240-unit, 6.73-acre project broke ground Dec. 16, 2024, and is projected to deliver 224,050 square feet of rentable space in a strategic location with robust demand by Q3 2026. Between 2021 and 2022 alone, the Fort Myers population grew 4.73%, with its median household income increasing by 11.1%.

“Successfully navigating a challenging lending environment to secure favorable rates during a volatile period is no small feat, and a true testament to the levels of mastery within our team,” said Charlie Keels, president of Encore Multifamily. “By aligning the delivery of Encore Daniels Falls with Fort Myers’ evolving supply and demand dynamics, the project is positioned to meet the needs of the community at just the right time.”

Encore Daniels Falls will offer studio, one-, two- and three-bedroom units in a modern, five-story urban-style building. Luxury amenities will include a clubhouse, fitness center, business center, pool, firepit, dog wash, dog park, outdoor lounging and a 24-hour package room. Its premium Daniels Parkway location is 1.5 miles from I-75 and 4.5 miles from South Florida International Airport.

About Encore Multifamily
Established in 2008, Encore Multi-Family, LLC (Encore Multifamily), a wholly owned subsidiary of Dallas-based Encore Enterprises, Inc., is a full-scale multifamily developer focused on both ground-up developments and value-add acquisitions in mixed-use and urban infill communities. Since its inception, Encore Multifamily has transacted 49 deals representing approximately $2 billion in assets. Its dedicated team of sector experts has overseen the acquisition, repositioning and development of more than 10,000 multifamily units.

Encore Restaurants Opens Second 7 Brew Stand in Millcreek, UT

7 Brew Coffee Opens in Millcreek, Donates $2,000 to Primary Children’s Hospital

Drive-thru coffee concept opens second Utah location at 877 E. 4500 S.

Millcreek, UT – November 27, 2024 – 7 Brew, the drive-thru coffee concept revolutionizing the service industry, held a ribbon-cutting ceremony today, celebrating the brand’s second Utah location at 877 E 4500 S. As a dedicated community advocate, 7 Brew Millcreek made a $2,000 donation to Primary Children’s Hospital, a member of the Children’s Miracle Network.

As part of its growing presence in the state, 7 Brew also announced the opening of its third Utah location in Riverton early next year. The Encore 7 Brew franchise group plans to open 11 locations in Utah by the end of 2025.

“We can’t wait to cultivate kindness in our Millcreek community as we grow our presence in Utah after opening our first stand in the state in Provo earlier this fall, ”said Aaron Hall, director of operations, Encore 7 Brew. “7 Brew has an established partnership with Children’s Miracle Network, and we’re thrilled to build on that partnership by donating to Primary Children’s Hospital to celebrate our Millcreek opening!”

Earlier this year, 7 Brew announced an ongoing partnership with Children’s Miracle Network Hospitals to celebrate the first official 7 Brew Day. To build on the partnership, Encore 7 Brew selected Primary Children’s Hospital as a charitable partner to celebrate the opening of their first location in Provo and second location in Millcreek.

Primary Children’s Hospital members attended the ribbon-cutting to receive 7 Brew’s donation and share about the hospital’s mission of providing personalized, evidence-based medical care to the families of Utah.

7 Brew’s next step is to host a Swag Day on Saturday, Nov. 23, from 5:30 a.m. to 11 p.m., during which customers who purchase a large drink will get a free 7 Brew t-shirt.

More than your standard coffee stand, 7 Brew offers over 20,000 unique drink combinations. From the original Blondie, a caramel and vanilla breve, to 7 Energy, smoothies, shakes and teas, there is something for everyone at 7 Brew. The brand boasts more than 250 stands across the country.

The 7 Brew stand will add 50 jobs to the Millcreek area. Those interested in joining the 7 Brew Millcreek team should apply at encore.7brewcareers.com.

About 7 Brew

7 Brew is a rapidly growing coffee brand revolutionizing how customers experience drive-thru coffee service and think about their morning energy boost. 7 Brew serves espresso-based coffee, chillers, teas, 7 Energy, sodas, and more, all with an extra boost of kindness from their team. The dream of 7 Brew came alive with the first “stand” in Rogers, Ark., and its seven original coffees. Now, 7 Brew boasts more than 250 stands across the country. For more information, visit www.7brew.com and follow 7 Brew on Instagram (@7brewcoffee), TikTok (@7brewcoffee), Facebook (facebook.com/7brewcoffee) and Twitter (@7BrewCoffee).

About Encore Restaurants, LLC

Encore Restaurants, LLC. develops, owns and manages specific territories of various full dining, fast casual, and quick-serve concepts across the United States. For more information about Encore Restaurants, LLC., visit encorebz.wp.brainvire.dev, or call (214) 259-7000.

Multifamily Housing Insights: Mansion Global Event Replay

Multifamily Housing Insights:
Mansion Global Event Replay

Featuring Encore’s Dr. Bharat Sangani, Chairman & CEO and Charlie Keels, President of Encore Multifamily

Dallas, TX – November 01, 2024 – Explore the key insights from our recent virtual event, held in partnership with Mansion Global, a Dow Jones company. Featuring industry leaders Dr. Bharat Sangani, Chairman & CEO of Encore Enterprises; Charlie Keels, President of Encore Multifamily; and Danielle Hale, Chief Economist at Realtor.com, discussed valuable insight on the impact of inflation on the housing market, anticipated rate cuts, and effective strategies for navigating current demand-supply dynamics in multifamily housing.

Encore Restaurants Opens First 7 Brew Stand in Utah

7 Brew Coffee

Encore Restaurants Opens First 7 Brew Stand in Utah

Donates $2,000 to Primary Children’s Hospital

PROVO, UT – October 17, 2024 – Encore Restaurants (Encore), a 7 Brew franchisee, held a ribbon-cutting ceremony today, celebrating the 7 Brew brand’s first Utah location at 2342 North University Pkwy. 7 Brew Provo, the drive-thru beverage concept offers over 20,000 unique drink combinations revolutionizing the service industry. As a dedicated community advocate, Encore made a $2,000 donation to Primary Children’s Hospital, a member of the Children’s Miracle Network.

As part of its growing presence in Utah, Encore also announced an opening in Millcreek this year and in Riverton early next year.

“We are thrilled to bring the first 7 Brew to the state of Utah and spread the brand’s mission of cultivating kindness and joy with every drink,” said Aaron Hall, director of operations for Encore Restaurants. “This celebration in Provo is extra special because it kick off our plans to open 11 locations in Utah by the end of next year.”

In July, 7 Brew announced an ongoing partnership with Children’s Miracle Network Hospitals to celebrate the first official 7 Brew Day. To build on the partnership, Encore selected Primary Children’s Hospital as a charitable partner to celebrate the opening.

Primary Children’s Hospital members attended the ribbon-cutting to receive Encore’s donation and share about the hospital’s mission of providing personalized, evidence-based medical care.

7 Brew Provo’s next step will be to host a Swag Day on Friday, Oct. 18, from 5:30 a.m. to 11 p.m., where customers who purchase a large drink will get a free 7 Brew t-shirt.

More than your standard beverage stand, 7 Brew offers over 20,000 unique drink combinations. From the 7 Fizz, a sparkling water infused with flavor and cream, to the 7 Original coffee drinks, 7 Energy, smoothies, shakes and teas, there is something for everyone at 7 Brew. The brand boasts more than 250 stands across the country.

The 7 Brew stand will add 50 jobs to the Provo area. Those interested in joining the 7 Brew Provo team should apply at encore.7brewcareers.com.

About 7 Brew 7 Brew is a rapidly growing drink brand that is revolutionizing how customers experience drive-thru service and think about their daily beverage treat. 7 Brew serves espresso-based coffee, chillers, teas, 7 Energy, sodas and more, all with an extra boost of kindness from their team. The dream of 7 Brew came alive with the first “stand” in Rogers, Ark., and its seven original drinks. Now, 7 Brew boasts more than 250 stands across the country. For more information, visit www.7brew.com and follow 7 Brew on Instagram (@7brewcoffee), TikTok (@7brewcoffee), Facebook (facebook.com/7brewcoffee) and Twitter (@7BrewCoffee).

About Encore Restaurants, LLC Encore Restaurants, LLC. develops, owns and manages specific territories of various full dining, fast casual, and quick-serve concepts across the United States. For more information about Encore Restaurants, LLC., visit encorebz.wp.brainvire.dev, or call (214) 259-7000

Encore’s Dr. Bharat Sangani is Featured on the Commercial Real Estate Secrets Podcast

Encore’s Dr. Bharat Sangani Joins Commercial Real Estate Secrets Podcast

Dallas, TX – October 02, 2024 – Encore’s Chairman & CEO, Dr. Bharat Sangani, was featured on the Commercial Real Estate Secrets podcast, hosted by Aviva Sonenreich. In this insightful episode, Dr. Sangani shares his top 3 tips for mitigating risk in commercial real estate investing.

Access the podcast

Encore’s Nili Sangani Joins GlobeSt.’s Podcast to Discuss Her Leadership Journey

Encore’s Nili Sangani Joins GlobeSt.’s Podcast to Discuss Her Leadership Journey

Dallas, TX – August 15, 2024 – Commercial real estate has made great strides in expanding its workforce, but there is still a long way to go. It’s a passion for Nili Sangani, senior vice president of operations at Encore Enterprises and Managing Principal at Encore’s subsidiary Ignite Investments. For her efforts in furthering diversity, Sangani was recognized as a Diversity Champion in GlobeSt.’s 2024 Women of Influence awards.

In this podcast, Sangani talks about the award and its significance. You’ll also hear:

  • How Encore Enterprises has found success with a diversified workforce from its inception,
  • Why diversity extends beyond a statistic into an embodiment of the leadership culture, and
  • What two things women should consider when embarking on a career in commercial real estate.
Access the podcast

Encore Enterprises Raises $72 Million USD in Global Funding

Encore Enterprises Raises $72 Million USD in Global Funding

Encore Opportunities, Ltd. public bond issuance on TASE now totals NIS 455 million raised-to-date

DALLAS – July 8, 2024 – Encore Enterprises, Inc. (Encore) today announced it raised an oversubscribed $72 million within 60 days on the Tel Aviv Stock Exchange (TASE) on issued debentures worth NIS 265 million backed by Encore Enterprises subsidiaries. To date, Encore has raised NIS 455 million through Encore Opportunities, Ltd. (EOL) which currently comprises 50 holdings, including dental practices and free-standing emergency rooms that were contributed in the form of corporate bonds. The funds raised will be used to pay off existing loans totaling about $63 million, and any remaining funds will be utilized to acquire new dental practices and run the current operations. With the existing loans paid down, the bonds will be considered the senior lender.

Introduced in January 2022, EOL was established to collateralize Encore’s operating companies to grow ownership stake while providing consistent cash flow to investors. It is one of the first U.S. operating companies offered on the TASE and has remained oversubscribed. EOL follows the success of Encore Properties, Ltd. (EPL), also offered on the TASE, which was established in 2017 to collateralize debt from Encore’s real estate holdings and today stands at NIS 918 million in total funds raised.

“Collateralizing our operating companies provides us with the necessary cashflow to grow the portfolio and enables us to have longer holds while also satisfying the needs of investors,” said Bharat Sangani, M.D., Encore Enterprises chairman and CEO. “Long-term holds also safeguard against market contractions as we’ve witnessed with our successful real estate-backed bonds.”

Encore’s dental subsidiary aims to improve the business of dentistry and access to dentistry by providing the highest value non-clinical dental services to dental practices nationally, with management services that let dentists focus on being the best clinician, maximizing their wealth creation for retirement. It currently operates 37 practices across 13 states, with affiliate practices showing an average of 52% growth in EBIDA after the first year of affiliation. Management services include operations management; revenue cycle management; clinical support; procurement; human resources management; accounting and finance; sales and marketing; legal, regulatory and risk management; and IT and systems support.

About Encore Enterprises, Inc.
Founded in 1999, Encore Enterprises, Inc. (Encore) is a vertically integrated, diversified investment firm based in Dallas. Since inception, Encore has completed over 150 commercial real estate transactions valued at $3.7 billion, with $1.6 billion current AUM across 32 states. Focusing on opportunistic and value-add strategies in non-gateway markets throughout the U.S., Encore develops, acquires and manages mixed-use retail centers, multifamily apartment developments, limited and full-service hotels, commercial office buildings and Veterans’ administration medical office centers. Encore also acquires operating companies in the medical, dental and restaurant industries as part of its sustainable investment model. Encore boasts one of the best 20-year track records in the industry, underscoring the firm’s focus on operational stability, prioritization of capital preservation and strength across market cycles. Encore investment offerings are available through Ignite Investments, a wholly-owned subsidiary and the exclusive capital-raising partner for Encore Enterprises. To learn more, visit https://encorebz.wp.brainvire.dev.

Encore Enterprises Welcomes Blackstone into the 7 Brew Family

Encore Enterprises Welcomes Blackstone into the 7 Brew Family

Dallas, TX – Encore is excited to announce that Blackstone is joining the 7 Brew Family. Encore is leading an expansion of 7 Brew drive-through coffee stands across Arizona and Utah and looks forward to watching Blackstone further amplify the brand across America. Click the button below to read Blackstone’s official announcement.

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