From the Desk of Jan Burman: How Diversification Drives Long-Term Success
On the Importance of Strategic Vision Beyond Traditional Real Estate
In an industry where many developers specialize in single property types, B2K Development has built success through strategic diversification across multiple real estate sectors and related industries. Chairman Jan Burman‘s willingness to venture beyond traditional boundaries has positioned the company as an innovative leader capable of adapting to market opportunities and societal needs.
Embracing Cross-Sector Opportunities
“We’re unique because we’re not scared to go into more than one business type,” Jan explains. “Some people just did industrial, some people just did office. Some people just did retail, and they were scared to cross into anything else.”
This fearless approach to diversification sets B2K Development apart from competitors who limit themselves to familiar territory. While specialization has advantages, B2K’s willingness to work across industrial, office, retail, and residential sectors has created multiple revenue streams and reduced dependence on any single market segment.
The strategy requires deep market knowledge and adaptable expertise, but it also provides resilience during economic cycles when different property types perform differently. When one sector faces challenges, strength in others can maintain overall business momentum.
Calculated Risk-Taking in New Industries
B2K Development’s diversification extends beyond traditional real estate into healthcare-related ventures, exemplified by their ownership of Wellbridge, a successful addiction treatment company. “A friend came to us, and he had mentioned he wanted to do this his whole life,” Jan recalls of the partnership’s origin.
The decision to enter addiction treatment wasn’t impulsive, it leveraged B2K’s existing assisted living experience while addressing a critical societal need. “Because of our assisted living experience, would we consider doing it with him? As luck would have it, we had land on Long Island that we knew we could get zoned.”
The $95 million investment demonstrates the courage required for meaningful diversification. “You have to have courage to do something like that,” Jan notes, acknowledging both the financial commitment and inherent risks of entering unfamiliar territory.
Innovation Through Strategic Partnerships
The Wellbridge venture illustrates how strategic partnerships can facilitate entry into new industries. By partnering with someone passionate about addiction treatment, B2K provided capital, real estate expertise, and operational experience while gaining sector-specific knowledge and credibility.
This collaborative approach has enhanced Wellbridge’s success, incorporating research partnerships with Northwell Health to develop innovative treatment approaches. The combination of real estate development expertise, healthcare operations experience, and research collaboration creates competitive advantages that pure-play addiction treatment facilities might lack.
Market Adaptation and Trend Recognition
Jan’s philosophy emphasizes staying ahead of market trends rather than simply following them. “We were able to branch out beyond the four walls of what we’ve done to new things, and [have] been able to follow market trends and kind of stay ahead of our game.”
This forward-thinking approach requires constant market analysis and willingness to act on opportunities others might miss. Whether recognizing the need for high-quality assisted living facilities, identifying residential development opportunities, or addressing addiction treatment demand, B2K’s success stems from anticipating rather than reacting to market needs.
Building on Core Competencies
While B2K Development ventures into diverse sectors, each expansion builds on existing competencies. The transition from assisted living to addiction treatment leveraged healthcare operations experience. Residential development utilized land acquisition and zoning expertise developed in commercial projects.
This strategic approach to diversification minimizes risk while maximizing the company’s ability to create value across different markets. Rather than starting from scratch in each new venture, B2K applies proven capabilities to new challenges.
The Innovation Imperative
“We’re not scared to do things that are new or innovative or different,” Jan explains, describing the mindset that drives continued growth. This willingness to embrace innovation extends beyond property types to include financing structures, operational approaches, and partnership models.
In an industry often resistant to change, this innovation-focused culture provides competitive advantages and creates opportunities for above-market returns. Companies that consistently push boundaries while managing risk intelligently often outperform more conservative competitors over time.
Lessons for Industry Leaders
B2K’s diversification success offers valuable lessons for other real estate professionals. First, fear of unfamiliar sectors can limit growth opportunities. Second, strategic partnerships can facilitate entry into new markets while sharing risk and leveraging complimentary expertise.
Finally, successful diversification requires maintaining core competencies while building new capabilities, ensuring that expansion strengthens rather than dilutes the overall business. As demonstrated by B2K’s continued growth across multiple sectors, courage combined with strategic thinking can create exceptional long-term value.