The Rise of Integrated Luxury: Where Hospitality, Retail & Residential Converge – Part 2

In this episode of the Construction Insiders podcast, host Jessica Bush speaks with Jeff Yachmetz of Dilmon, LLC and Seb Betton of Cumming Group about how luxury residential, hospitality, and retail sectors are converging into unified, high-end living environments. They examine the operational and design challenges of converting commercial buildings, such as the landmark One Wall Street, into residential spaces. Topics include zoning, structural limitations, and complex space planning requirements. The discussion also addresses how post-pandemic lifestyle changes have created an “amenities arms race,” where hospitality-branded services, coworking areas, and on-site dining are no longer considered extras, but expected features. Drawing on recent project experience, the guests emphasize the importance of starting with intentional design and how a fully integrated delivery model is helping redefine urban luxury living.

[00:00:00] Jessica Busch-Garrett: I am your host, Jessica Bush, and welcome back to part two of the Rise of Integrated Luxury where hospitality, retail, and residential converge. In part one, we discussed the combining of the luxury, residential, hospitality, and retail sectors becoming a powerful one-stop shop sector. So let’s talk about expectations. Today’s expectations.  

[00:00:30] Jeff Yachmetz: The best way that I could describe it is it’s an amenities arms race. 

[00:00:34] Seb Betton: And I think that comes back to convenience and, and post pandemic. And it’s that people want a sort of one stop shop hybrid environment. 

[00:00:43] Jeff Yachmetz: So we almost kind of took all of the feedback from all of our different business units. 

[00:00:49] Jeff Yachmetz: And combined it into sort of one sort of investment strategy at this property, and the market actually responded to it.  

[00:00:57] Jessica Busch-Garrett: So we are going to jump back into our conversation about the combination of luxury, hospitality, retail, and residential all coming together, um, in this new sector that is just taking over the industry right now. 

[00:01:12] Jessica Busch-Garrett: Um, I have. Seb and Jeff with me again, and we are going to jump into all things Printemps. As promised our earlier episode kind of went over the, the sector in general and where it’s heading, but now I really wanna get into this project, um, and what it exemplifies for this sector. So, Jeff Printemps very complex, unique, one of a kind. 

[00:01:36] Jessica Busch-Garrett: It is a wonderful example of where this sector is going. The original plan for this project. I’m sure it was a multi-year. I wanna say four-ish. 

[00:01:49] Jeff Yachmetz: That’s right. Four years. 

[00:01:50] Jessica Busch-Garrett: Okay. Four years In the planning pro. Um, in the planning, uh, phases, how did things evolve during those four years? Can you kind of give us some of that context and 

[00:02:00] Jeff Yachmetz: Sure. 

[00:02:00] Jessica Busch-Garrett: We jump into where we are today.  

[00:02:02] Jeff Yachmetz: Um, the, you know, the story of Printemps in New York really goes back to, um, when we first started looking at the building and envisioning the. Total, um, how the building would look and feel and actually have its own sort of, uh, characteristics. So with print os we called it a lab. 

[00:02:25] Jeff Yachmetz: It was gonna be sort of a first, uh, of its kind in the New York market. So Printemps was, uh, envisioned as not just a luxury retail department store. Absolutely not. It was envisioned as an a total luxury retail experience where you could, um, spend the day, you could, um, have f and b, you could have shopping, you could have, um, all different kinds of experiences with art and music and lifestyle curation. 

[00:03:01] Jeff Yachmetz: Um, it was envisioned as almost the next. Level than the next evolution of retail. And that’s where we started with the design from, from the conceptual standpoint almost four years ago.  

[00:03:16] Jeff Yachmetz: And so, Seb, from your perspective, how does this project kind of represent? It’s called a departure from traditional retail development? 

[00:03:26] Seb Betton: So I think, um, sort of from day one when I went, went in mm-hmm. Um, I saw the vision from Jeff, from Laura Lendrum and her team Laura Gonzalez. And the way that they were trying to set up this project was different to traditional retail in that, uh, if you’ve seen the, the slogan not a department store is very important. 

[00:03:45] Seb Betton: It’s based on a, a French apartment. Uh, you move through the different spaces, all of the spaces are different, have a different features, different artwork, different finishes, different installations, which make it sort of a destination. And as Jeff said, an experience for customers to come to, not just for shopping, but for food, uh, for wine, for cocktails, for treatments for. 

[00:04:09] Seb Betton: Uh, you know, all of those things are in between. Mm-hmm. Um, and just to see this beautiful store, and it really is a departure from what you initially think of when you think of, uh, the box. 

[00:04:20] Jessica Busch-Garrett: So the tagline just isn’t a tagline. It was really  

[00:04:22] Seb Betton: that, that that really is, and that really is what has driven the whole project. 

[00:04:27] Seb Betton: And I think if you, if you speak to those, those, those people who, you know, had those init initial ideas, that’s, that’s what they wanted it to be.  

[00:04:34] Jessica Busch-Garrett: So what, in terms of unique construction elements, design. What was incorporated into this space, um, to provide that complete lifestyle experience?  

[00:04:48] Jeff Yachmetz: Well, I mean, the way that we, we started it to, to Sebs point was we looked at it as a French apartment, each having its own individual characteristic for each different room. 

[00:05:00] Jeff Yachmetz: Um, starting from there. What the room was actually going to, um, evolve into really dictated the design. And so you could see very, um, very clearly as you move through the store, you’re gonna have a different experience in one room than you are in the next room.  

[00:05:18] Jessica Busch-Garrett: Okay?  

[00:05:18] Jeff Yachmetz: Um, and so. With the, uh, with, with that idea, we took the design to, to another level. 

[00:05:25] Jeff Yachmetz: I mean, there’s um, something like 150 different finishes throughout the store. And so it’s not like you’re gonna have the same experience twice. You’re gonna see something different around every corner.  

[00:05:38] Jessica Busch-Garrett: Oh, wow.  

[00:05:38] Seb Betton: Uh, you know, there’s artist installations from around the world. There’s different, different spaces, as Jeff is saying, and different things that you can see every time you come into the store. 

[00:05:48] Seb Betton: Um, one of the examples is, is the beauty corridor, which sort of is a transition from one space to another. Okay. It was con completely constructed from GFRG and the, the remit from from Laura was. You know, no straight lines. It’s completely, uh, made so, you know, it’s, um, like  

[00:06:07] Jessica Busch-Garrett: organic looking.  

[00:06:07] Seb Betton: Yeah, exactly. 

[00:06:09] Seb Betton: And you know, there’s many features like that and that’s just one of, as deficit said, hundreds of different design features within, within, within the space.  

[00:06:17] Jessica Busch-Garrett: So when I hear hundreds, it gives me like a oof procure… procurement. It makes me nervous about that. So what types of challenges? I’m thinking timelines, budgets, hundreds, procurement. 

[00:06:31] Jessica Busch-Garrett: Talk to me about it.  

[00:06:32] Jeff Yachmetz: So, so procurement was, um, at the forefront of our pre-construction. Okay. Thinking, uh, we, we started pre-construction, uh, about a year before we actually started physical construction. And during that period, um, we put together a plan of, um, how do we, how do we actually procure these materials? 

[00:06:55] Jeff Yachmetz: And some of the materials were normal materials, high end finishes, but some of these materials were things that. No one has ever done before, and we almost had to figure out how to make it a reality, um, from Laura’s sketches in her interior designs. Um. So we, we, we put in a very, uh, uh, long effort into sort of that for forward thinking. 

[00:07:21] Seb Betton: And I think in terms of, uh, yeah, there’s a lot of effort into that. And, and for me, with these sorts of things, it also comes back to communication. On procurement. ’cause there was so many different suppliers, there were so many different materials. It sort of started from the top really from, from Jeff and, and, and, and, and the rest of the team that, you know, we’d have, we’d have issues with procurement all the time. 

[00:07:43] Seb Betton: And it’s the way that your team reacts, um, to, to sort those issues and, and to resequence. Uh, the installation is where we really. Sort of, I think, excelled on, on, on this project.  

[00:07:55] Jessica Busch-Garrett: I love seeing your smiles when you bring, I just gotta say that I love seeing your smiles when we talk about these challenges, or I can just see your brains going to certain situations that have happened and it’s. 

[00:08:08] Jeff Yachmetz: It’s almost like the, uh, the, the Cheshire smile, right? Yeah. Because you’re thinking, you’re, what’s  

[00:08:12] Jessica Busch-Garrett: behind that?  

[00:08:13] Jeff Yachmetz: You’re thinking back to when you were in the moment and, uh, at that point, uh, how are we gonna figure this out? But as a team and, and working with Seb and, and, uh, the Cummings team and his team, I mean, it was no, almost no challenge was insurmountable. 

[00:08:28] Jeff Yachmetz: Mm-hmm. And that’s the way we looked at it. ’cause we were doing something first of its kind. Um, and so we were sort of trail setting. We were, we were, you know. Going down a path that in some instances had never gone down before.  

[00:08:41] Jessica Busch-Garrett: Yeah.  

[00:08:41] Seb Betton: And it’s, and I think we’re, we’re clear that, you know, in, in construction, unfortunately not, not everything goes the way that you want it to go, and it’s the way that you’re only trying  

[00:08:49] Jessica Busch-Garrett: to mitigate things. 

[00:08:50] Jessica Busch-Garrett: Yeah.  

[00:08:51] Seb Betton: It’s the way that we, you react. And I was, you know, lucky enough to work with Jeff in, in that respect that it was always about, well, what’s the solution? How are we gonna move past this? How are we gonna get it installed and done? And you know, that that’s, that was, that was great.  

[00:09:04] Jessica Busch-Garrett: So, not to dwell on challenges  

[00:09:07] Seb Betton: mm-hmm. 

[00:09:07] Jessica Busch-Garrett: But, um, talking about project management, these logistical hurdles, um, dense urban environment, how did you navigate that from a project management standpoint?  

[00:09:20] Seb Betton: Mm-hmm. So, I mean. The cha that that challenge of, of, uh, you know, in downtown New York mm-hmm. Is always a thing. How do you get all of these materials to the space? 

[00:09:32] Seb Betton: It’s something that, again, it’s meticulous planning. It’s working with all the different partners and all of the different suppliers to make sure that they can, um. They can deliver on what they promised in terms of actually delivering and sequencing. I think with this, with this, this project, as Jeff said, it’s one of a kind, we, we’ve not really done something like this before and we had to look at sequencing in, in different ways. So one… 

[00:09:57] Jessica Busch-Garrett: I was gonna ask you about methodologies with. This complexity of all these integrated experiences? 

[00:10:03] Seb Betton: Yeah. So in one of the, one of the things that we actually switched halfway through the project was more focusing on areas within the project, and they would be their own sorts of sequential layers within the overall project. 

[00:10:15] Seb Betton: Quite often in construction, you’ll have subcontractors and you’ll, you’ll look at each trade as like a individual, uh, that’s working throughout the whole site. We sort of had to split that out a bit more and go granular on each area because each area was almost like a different project.  

[00:10:32] Jessica Busch-Garrett: And so coordination with these teams, how did that go? 

[00:10:36] Jessica Busch-Garrett: And you know, what do you have to, what are those requirements for such a diverse building?  

[00:10:42] Seb Betton: So coordination again, it goes, it goes back to communication. Yeah. And I think that’s something that we excelled on. We were working with suppliers, designers, consultants, from all across the world. So it wasn’t just New York or the US base, it was the US but also Europe, throughout Europe and and across the world. 

[00:11:02] Seb Betton: So we had to make sure that communication was number one thing of how we move this forward. And I think. We did that. We did well, yeah. 

[00:11:10] Jeff Yachmetz: I mean experiencing, uh, uh, different time zones. Yeah. And different language barriers and different sort of, uh, challenges of working with, uh, a team where they’re not physically with you, uh, in the project team room, but actually on the other side of a screen. 

[00:11:25] Jeff Yachmetz: And so I guess we benefited a little bit from, uh, the advent of, um, you know, the post pandemic world of Zoom and digital.  

[00:11:32] Jessica Busch-Garrett: I was gonna ask you, I’m sure some technologies. We’re heavily relied on. 

[00:11:36] Jeff Yachmetz: Heavily relied on. Heavily relied on, yeah. So.  

[00:11:40] Jessica Busch-Garrett: And, um, kinda getting past that, but we’re talking quality control. So many unique elements, finishes, um. And specialized installations. I mean, how did the quality control, how was that navigated?  

[00:11:57] Jeff Yachmetz: Yeah. Well, uh, going back to Sebs point, you know, establishing individual teams for those individual rooms mm-hmm. Um, was, was key. But however, not losing sight of the big picture. 

[00:12:08] Jeff Yachmetz: So we had individual teams that were assigned to those, those rooms. But then we also had an overarching almost committee, which would sort of look at the project in totality and. To, to ensure that we were achieving one Laura’s design, uh, her design intent, um, the, the actual, uh, finish level of the project, and then also the quality that we wanted,  

[00:12:32] Jessica Busch-Garrett: um, lessons learned. 

[00:12:35] Jessica Busch-Garrett: I always like to ask that from a project like this, I’m sure there were many highs. There were some lows, but. Stepping back and kind of looking at the, kind of what the next could be, what lessons learned, learned from this project?  

[00:12:49] Seb Betton: I think we were, we were pretty good at this, but actually something that you can always improve on is, is not sort of developing in, in silos. 

[00:12:57] Seb Betton: So from the beginning, from day one, you should have involvement from all parties. You should be talking to the operators, you obviously architects, design teams, owners, and then, and then thinking about how you are actually gonna operate the space afterwards. I think we actually did that pretty well, but it’s something that I think is fundamental to get these projects right, is to make sure that, yeah, you’re gonna have a beautiful design and it’s gonna be amazing project, but also how is it gonna operate afterwards, and how do we make sure that everything works as it should for the end user. 

[00:13:28] Seb Betton: Yeah,  

[00:13:29] Jeff Yachmetz: yeah. Losing, not losing sight of the end goal and the big picture, uh, when you’re in the thick of it, in that sort of construction, I think is, is a really important, um, idea to, to keep in mind when you’re working through these, because you know, you’re, you’re going a thousand miles an hour to get to the finish line, but at the end of the day, if it’s ultimately, um, not. 

[00:13:52] Jeff Yachmetz: As usable or user friendly to the operator at the end, it’s almost like, well, what was all the, uh, what was the point?  

[00:14:00] Jessica Busch-Garrett: What was the stress? 

[00:14:00] Jeff Yachmetz: What was the stress? Right?  

[00:14:03] Jessica Busch-Garrett: So, Seb, beyond what we’re seeing today, um, with Printemps and the viral hits like the Louis Vuitton flagship store that we worked on, what do you envision kind of this next evolution, um, with, with luxury experiences? 

[00:14:18] Seb Betton: So, so I, I truly think that what. What has been delivered at Printemps is something that will be replicated or, or  

[00:14:26] Jessica Busch-Garrett: try,  

[00:14:27] Seb Betton: would try to replicate it because it’s such a, um, yeah, it’s creating an experience. Um, and it’s, it’s adding all these different elements. I think one thing that we’re seeing and, um. 

[00:14:39] Seb Betton: Throughout is sort of branded, branded residences, branded hotels, and, and, and those sorts of what we spoke about at the beginning, retail, hospitality, residential, all coming together and being an overarching experience for the owner and the, and the customer.  

[00:14:56] Jessica Busch-Garrett: Do you guys feel that these ultra amenitized buildings are sustainable from a financial and environmental perspective? 

[00:15:05] Jessica Busch-Garrett: Is this a long-term? Is this like the long-term game plan? Is this a fad? How do you feel about where things are going?  

[00:15:12] Jeff Yachmetz: I think that if they’re done right and they’re done with the, uh, end user in mind. I think it’s absolutely sustainable. I think it, it actually could get, uh, better and, and to another level. 

[00:15:25] Jeff Yachmetz: Um, it’s where the, the, um, the divergence comes when you don’t listen to the market. When you sort of, um, don’t really try to think through the end user and how it actually will benefit the end user. I think that’s where you might run into problems. 

[00:15:44] Seb Betton: I think. I think as Jeff’s saying, it’s like. Make sure that what you are supplying is actually intentional. 

[00:15:50] Seb Betton: So it’s intentional for what, what that owner or customer or whatever what whatever they want. And it’s intentional to that. And I think that will then make it have long term success in my opinion.  

[00:16:03] Jessica Busch-Garrett: Are there any new technologies on the horizon? Um, we’ve talked about kind of changing work patterns, but is there any technology that you might be considering for future in terms of trans, you know, the transformation of these spaces? 

[00:16:16] Jessica Busch-Garrett: Um, any international trends that we’re seeing, you’re kind of keeping your eye on like, what is that?  

[00:16:21] Jeff Yachmetz: Well, I would, I would be remiss if I didn’t mention AI and, and the integration of AI into almost everything that we’re gonna be doing. But from, uh, a customer, uh, um, uh, a resident, um, uh, experience. We think that, you know, AI could be leveraged into basically, um, every aspect of the re of the retail experience as well as the residential experience. 

[00:16:47] Jeff Yachmetz: Um, everything from the customers, uh, or the residents trends, how often they walk their dog, how often they actually, uh, they require reservations through our building concierge service, through, um, what they like their, um, their apartments. Uh, optimal temperature settings. That, and then  

[00:17:08] Jessica Busch-Garrett: utilizing the data that we can collect to make the experience  

[00:17:11] Jeff Yachmetz: exactly, and just being, uh, creating a more smarter, uh, living environment. 

[00:17:16] Jeff Yachmetz: And then on the, on the retail side, uh. Trends that we see where products may, uh, be a, a hot seller and so that we could react almost instantaneously. Or if we have, like, we have, uh, seven f and b components in Printemps. 

[00:17:31] Jessica Busch-Garrett: Seven? 

[00:17:32] Jeff Yachmetz: Seven. Yeah. And if we actually have a run on certain in reservations or, you know, we have a, a, um, a, a hot seller in terms of, uh, an offering, how do we react to that and, and react quickly.  

[00:17:45] Seb Betton: I think what I’d be interested to see, as Jeff mentioned ai, um, and obviously how that data could be used as well. At the beginning when you are just starting the development, it can sort of provide answers of how these buildings should function and how people want them to function. And I think, I think that’s gonna be fascinating to see how that develops. 

[00:18:06] Jessica Busch-Garrett: So I have to thank you guys. This has been an incredibly insightful conversation about this evolution of hospitality, residential, retail, um, and really what to expect and keep our eye on for the future. Uh, but before I let you guys go, um, before we wrap up. What is one piece of advice that you would give developers, construction professionals, that are maybe just starting to, to navigate this integrated landscape? 

[00:18:36] Jessica Busch-Garrett: And, and kinda what would you, what would you, what would be your Okay. Main takeaway that they really need to kind of focus on in this world right now?  

[00:18:43] Jeff Yachmetz: Uh, I, I would say that one takeaway is, um, be nimble. Uh, react, be able to react to. The data and the marketplace, uh, that you are, uh, that you’re receiving from your customer base. 

[00:19:00] Jeff Yachmetz: Uh, because if you, if you are reactionary and, and almost sort of coming late to the party, that’s not the best place to be. But if you can be flexible and you can be nimble and you could adapt, um, like we did in, in a few different instances at One Wall and Printemps uh, I think you’re more, you’re, you’re better suited, um, than some of your competitors. 

[00:19:23] Seb Betton: Yeah. And I think to follow on from that point, and I sort of mentioned it earlier, I think it’s all about collaboration and it’s all about if you are gonna deliver something on the scale of, of, of, of what we’ve done here and, and, and what was, what was delivered. You wanna make sure that you have all of the parties there early on in the process and that everybody is, is on the same page of how we get to that beautiful project ending, um, that we’re looking for. 

[00:19:48] Seb Betton: So collaboration always for me.  

[00:19:51] Jessica Busch-Garrett: Collaboration’s a win for you.  

[00:19:52] Seb Betton: Yeah.  

[00:19:53] Jessica Busch-Garrett: All right. Well, thank you both very much and um, thank you to all of our listeners and we will jump back in a little bit later. Thank you.  

[00:20:00] OUTRO: Thank you. Thanks. Thank you for joining us for the Construction Insiders Podcast. You can continue the conversation by leaving a comment, asking a question, or participating in our poll. 

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