The Company. Our core Values. Our Beliefs.

Good Real Estate Is Where People Want To Be

What Happened

We study the history of the asset, understand what drove the original development, what happened, how to mitigate the liabilities, and how to plausibly add value. We underwrite the cost to restore the property in order to be rent ready, then back into a purchase price from a conservative sales price, keeping in mind surprise and profit. Then, don’t budge.

Quality Assessment

What is the quality of earnings: past, present, and future outlook? This is the rhetorical question which marked the beginning of my professional experience in October, 1974. The question was posed by by Robert Gardella, a dyed-in-the-wool, secured debt credit officer with The Bank of New York (now BNYMellon). The honest response to the question affects the everything, including the purchase price and the ability to drive the future sale price.

Pricing

Buy side and sell side pricing have to be plausible and provide for a margin of safety. On the buy side, leave room for the unexpected once you own the real estate. On the sell side, don’t be piggy, especially if you want a clean and timely sale. The market can move in a heartbeat, just as it (the debt market) did in the days and week’s following the outcome of the November 2016 election.

Risk Mitigation

There are no performance guarantees, save one. The only guarantee is that pro formas are wrong, either on the high side or the low side. Our aim is to first understand and then neutralize the risks, enabling the project team to focus on sustainable income stream increases for timely capital recovery and gain realization.

Respect

Treat everyone with respect, as though you were the others. With proper respect, our team service professionals (especially those in on the property) often go the extra mile (with urgency) towards achieving the stated goals. We also view respect as a two-way street relative to integrity of information. In this regard, we invite our service professionals to punch holes in our value add game plan. The bottom up view is generally clear-sighted.

Support

Real estate professionals enjoy working with us. No head games. Straight talk. We do what we say. Transparency all the way. Stand up bids. Vendors, investors, lenders, equity investors, sellers, et al., want to, and do, repeat business with us.

Past Property Value Enhancement

Lessons Learned

River Ridge Aparatments

Spartanburg, South Carolina
Spectrum Property, Property Manager

Communicate Communicate Communicate

These apartments, which were abandoned in 2009 before completion owing to a bankrupt loan guarantor, required an astronomical level of communication between the property manager and the general contractor to prepare the units to be rent ready. The beginning scene looked like a train wreck in 2Q09 when we purchased the defaulted loan. The property was sold in 3Q10,  just short of stabilized occupancy. The entire team was time was communicating a lot and moving full speed ahead.

300 South Tryon Street High Rise

Charlotte, North Carolina

Anticipate the unexpected

Connnecticut Mutual Life Insurance (CML) walked away from an announced high rise office development after the crash of 1987, leaving over $5,000,000 of pre-construction costs on the table, including my share of the anchor tenant lease commission. Subsequently, CML merged with Mass Mutual (1996), which is now the capital provider for the 300 South Tryon Street office high rise and hotel development now under construction (2017 opening projected). Be alert. Stuff happens.

Hercules

Charlotte, North Carolina
Colliers International, Property Manager

Mind the Details

The early years of the Great Recession ground nearly all real estate transactions to a halt. Minding the details is critical, especially during unexpected hold periods. Representatives of Colliers stayed focused on the many, sometimes pesky details which popped up with this former WWII munitions depot and location for assembling Cold War Era missiles (1830 Statesville Avenue). One such detail was a fire alarm which seemed to go off at random. The property was sold in 3Q16.

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