Our Client is a Philadelphia-based real estate private equity firm that specializes in the acquisition and management of opportunistic industrial and flex assets in the Greater Northeast region of the United States. Founded in 2017, the firm brings an institutional approach to their investment strategy, focusing on middle-and upper-middle market B & C Industrial/Flex-product primarily located in the Southeast Pennsylvania/South New Jersey markets. Both Founders were born and raised in the firm’s core markets – bringing a rare local point of view that is crucial to the firm’s strategy.
The firm evaluates industrial and flex investment opportunities critical to e-commerce, fulfillment, manufacturing, and production processes throughout the Greater Northeast and have built and maintained a vast network of debt and equity relationships, streamlining the internal funding process for each new acquisition. In addition, the firm’s size and nimble approach enables quicker actions and decision making compared to competitors – ranging from acquisitions to leasing to capex and cosmetic work on newly acquired assets.
As a fully integrated firm – with internal infrastructure ranging from construction to property management – our Client delivers an unmatched approach to strategic industrial acquisitions and asset management. The firm currently owns and manages over 6 million square feet of industrial space in the Greater Northeast region.
The Senior Property Manager (SPM) is responsible for increasing the overall value of the asset, both physically and economically, through proper financial management, administration, facility operation and asset improvement/protection.
The SPM develops the budgets for and maintains control of nearly all expenditures in the Operating Budget including all CAM items, owners operating expenditures, recoverable utilities, and capital improvements (excluding development expenses).
The CAM/Operating budgets must be developed within corporate guidelines, with an understanding of existing recovery situations, market conditions and the needs of the property. Skill at developing operating budgets is one of the most critical functions of the SPM as it impacts proper forecasting, asset results and tenant performance. It is critical to address all property needs without exceeding the budget.
Capital budgets must be developed and forecast with a strong understanding of long-term facility planning. Lifecycles of roofing, parking lot paving, electrical systems, HVAC, etc., are key components to proper capital planning. In addition, a good sense of asset presentation and marketability are important to identifying potential areas for asset improvement.
The recoverable utility budget is typically a profit center for the locations where it applies. Knowledge of utility resale operations and procedures are important to maximizing profitability in this area.
In addition to the annual budgets above, construction cost forecasting and bidding are necessary for the efficiency of the leasing operation. Accurate and expedient management of the Landlord cost component of leasing deals is important to accelerating and maximizing revenue stream.
Equally as important as developing proper budgets is the need to control operations to meet those budgets. Through creative management, aggressive bidding, implementing cost controls and other techniques, the SPM needs to achieve property objectives within the guidelines of established budgets.
All expenditures are to be reviewed and approved by the SPM. The SPM must monitor and control the operating budget status.
The SPM oversees and is responsible for the performance of various property administration functions. These functions are important to the overall operation of the center and the company as a whole.
Reporting – Various reports are due on a regular basis as well as others that are requested from time to time. Timely submission of detailed, accurate reports helps the overall efficiency of the Asset/Property Management Department. Good business writing skills, understanding of report content and accurate collection of data are all significant.
Human Resources – The SPM interviews, hires, trains and supervises the Facility Supervisor (if applicable), Administrative Assistant and maintenance personnel (if applicable) for his/her portfolio. Knowledge of basic employment laws is imperative, as is maintaining all necessary documentation in keeping with company policy. The ability to properly train and supervise staff is one of the most important tools of the SPM.
Lease Administration – The SPM must understand the real estate lease in order to properly enforce its covenants and manage the asset. Understanding each party’s responsibilities and liabilities under the lease will prevent potential problems and avoid unnecessary expenses.
Lease Tracking – Documenting, tracking, and updating the leasing process on the corporate (Status Report) system, particularly the Asset/Property Management functions, is critical to corporate operation. Also, effectively tracking pending expirations is an excellent planning tool to be prepared for upcoming Landlord work.
Record keeping/Documentation – There is a significant amount of documentation that must be maintained on each property. The SPM must oversee this process and ensure its completeness. This includes, but is not limited to, Certificates of Occupancy, tenant insurance, vendor insurance, contracts and service agreements, warranties, inventories, personnel records, etc.
The SPM must manage the repair, maintenance, and improvement of the physical assets. This includes every aspect from the daily cleanliness and aesthetics of the center to major improvement projects. The objective is to not only prevent loss of value, but also to help increase asset value where possible.
This area of responsibility involves a long-term strategy for the center which can be carried out through proper budgeting, establishing, and implementing systems and procedures for improved operation, training and supervising facility and maintenance staff to manage customary property needs, and setting the standards by which all these are measured.
In addition to the normal repair and maintenance items that arise, systems of periodic maintenance and service should be established to reduce unexpected repairs and expenses. Long-term plans for repair or replacement should be incorporated into the financial planning process.
Contract specifications should be developed which maximize the service level received at the best cost. The ability to do a cost/benefit analysis of various contract proposals is useful. Proper allocation of resources (contractors, in-house personnel, equipment) is key to maximizing performance and shopping center standards at the most effective cost.
The level of technical expertise and experience of the SPM is also important so he/she can provide proper direction to the facility and maintenance staff, as well as speak intelligently with the various trades and contractors. Developing the best approach to challenging facility situations requires broad-based knowledge. The ability to effectively negotiate with and supervise outside contractors is extremely helpful.
The SPM must manage all aspects of the tenant construction process (where applicable). This includes Landlord work and Tenant work, Bidding, Contracting and Supervising Landlord work. Reviewing and approving tenant plans, tenant permitting and other documentation. The SPM must understand the Landlord’s criteria, be able to review drawings, collect all necessary paperwork, enforce construction regulations, and inspect the contractor’s work.
The SPM must continually inspect and review his/her properties, staff, systems and procedures, contracts, and budgets to ensure that the highest possible standards are being maintained.
The SPM must be able to take a broad view of their properties and procedures in order to protect and improve the asset. There is a broad range of skills the SPM can use for both tangible and intangible value.
Liability – In addition to the obvious facility function of inspecting, identifying, and correcting physical defects, the SPM must be able to identify procedural and operational defects as well as pending or potential future physical defects.
Also, proper management of the claim reporting procedure, documentation and defense of claims is imperative to the protection of the asset.
Keeping abreast of current codes and regulations (i.e., ADA, etc.) is important to prevent potential lawsuits. The ability to foresee potential liabilities before they arise is an invaluable skill.
Revenue – In addition to the customary support of the leasing effort and expediting tenant openings, the SPM should be looking for alternative sources of revenue that can be generated. Any additional revenue generated by the SPM goes directly to the bottom line.
Market Knowledge – A good understanding of and ability to evaluate the surrounding market is helpful. Understanding the factors that can impact the center and keeping abreast of new developments is necessary for the proper management of the center. This information is to be included in a quarterly report.
Tenant Relations – Good communication and interpersonal skills are necessary to maintain good relationships with the tenants, particularly when most interactions are to enforce a center/building regulation or lease covenant. Maintaining uniform guidelines and compliance, but in a professional and pleasant manner, is a difficult but important skill of an SPM.
Township Officials – Maintaining a good working relationship with township officials provides a value to the company and its assets.
Qualities of an Exceptional Candidate:
8+ years in the real estate industry
5+ years in a managerial position
Bachelor’s Degree or higher
History of continuing education and training
Excellent communication and supervisory skills
Background in budgeting, personnel administration, contracts, marketing, construction, tenant relations and lease administration required
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