The Art Of Real Estate Portfolio Management

Contents include real estate investment strategy, public and private equity, public and private debt, allocation across the real estate asset class, and more.

A Codifying “Best Practices” Guide to Effectively Managing the Entire Real Estate Investment Process The Handbook of Commercial Real Estate Investing delivers an authoritative “best practices” approach to the three major areas of the industry: investment transactions, asset management, and enterprise management. Skillfully written by John McMahan, a leader of the U.S. commercial real estate investment industry, The Handbook of Commercial Real Estate Investing presents state-of-the-art methods needed to successfully invest in and manage commercial properties such as office buildings, shopping centers, industrial buildings, apartments, and hotels. Designed to codify the industry “best practices” encouraged by financial institutions, The Handbook of Commercial Real Estate Investing offers: Complete guidelines for the critical “due diligence” stage of the investment process Effective asset management techniques for leasing, property management, and tenant relations Detailed procedures for reporting to investors on the financial performance of the real estate portfolio Information on using technology in the “due diligence” process A wealth of sample forms and checklists used in real estate investment A valuable glossary of real estate investment terms Authoritative and easy to use, The Handbook of Commercial Real Estate Investing will serve as a valuable strategic guide to managing the overall real estate investment process, as well as a “best practices” tool for improving each operating area.>

Spurred by the passage of ERISA in 1974, the ownership and management of commercial real estate has shifted from deal-driven entrepreneurs to strategic institutional investors. This shift, which shows little sign of abatement, has revolutionized the real estate industry, as pension funds, insurance companies, and other institutional investors continue to dominate real estate investment activities - and realize the risk-return enhancing characteristics of mixed-asset portfolios.

The Asset Management Handbook is divided into three phases. Chapters 1 through 3 are conceptual introductions. Chapters 4, 5, 6 and 7 get into the "meat" of the policies and techniques of evaluating the capital needs of your property over the next 40 years. Chapters 8 and 9 help you identify which properties are doing well and which are the most threatened. What action should you take? What are the standard preservation and rejuvenation options available to a real estate portfolio manager? What is Asset Management? People are more accustomed to thinking about asset management of money or stocks or a package of annuity and savings accounts. Real estate asset management is a slower, longer term process. The properties in your portfolio, especially in affordable housing, have life cycles of 30, 40 or infinite time periods. Most nonprofit owners are not interested in selling to capture any appreciation on their properties. Their goal is to provide housing for the foreseeable future as long as the asset can perform. Many nonprofits and mid size property owners do not have a dedicated asset manager. It is extraordinarily important that someone take on that long-term analysis, be it for 10%, 25% or 50% of a full time employee. The next step is to benchmark your properties. How are you doing compared to the world? Not just on straight bottom line consideration, but how about in human services? Have you saved sufficient money to replace the roof or add the sprinklers that will be required at the next renovation? The Asset Management Handbook provides well-established objective criteria for 25 different variables. We've seen participants in the asset management practicum expand that up to 40 variables to analyze on an annual basis. We'll see how benchmarking and risk ranking of your portfolio are essential first steps in establishing its viability and needs. Capital Needs and Their Funds. In this "meat" of the manual, we walk you through essential policies that define how your properties will operate over the long term. We show how policies made by lenders, bankers and other short term partners can be self destructive and damaging to property owners holding for the long term. First example of the dichotomy, the lender is suggesting the reserve is sufficient when two years after their loan matures, the property will require $4 million of replacement expenditures. This is fine for investment property held for resale. You just flip it and get down the road. Most affordable housing owners do not consider selling the property as a positive outcome. Even if you've never performed a property inspection before, the Handbook offers you easy methods of counting and sorting components into well established remaining economic lives Then it is on to the massive spreadsheet that calculates the future need and the various waves in which it will appear. Exterior paint first, then roofs, windows and doors, and kitchens and baths follow and then it starts all over again. Most capital needs assessments performed by third parties make financial assumptions that are untenable. Their interest rates on earnings are overstated and their inflation rate on the components are generally understated leaving you with significant shortfalls, even if you have escrowed according to directions. We will keep you out of that trap, showing you the realistic funds that are required and the time periods when the inevitable refinancing windows will occur. Risk and Solutions. In the final section, we evaluate your primary risks. Which properties should you address first? Which properties have the strength and energy to function on their own? Then what should you do about it? Refinance? Renegotiate? Value engineer? Raise rents? In the foot race, the runner is always caught by the tsunami of required replacements. It is just a fact of the business that every 20 to 30 years you've got to re-invest a significant amount of money

In the competitive and cutthroat world of Commercial Real Estate investing, no two deals are alike. And while an investor can utilize certain fundamentals and scientific processes to build their business foundation on, becoming a top operator and investor of commercial properties requires much, much more. True success requires a certain intangible; an "It" factor; what the french call a certain "je ne sais quoi." This is what is known as "The Art of Commercial Real Estate." Unfortunately, the only way to acquire this intangible quality is through years and years of Real Estate transactional and asset management experience. In The Art of Commercial Real Estate, private equity fund managers and insiders, Anthony Grosso and Chris Palermo, reveal their best business practices so you can bypass this long and tedious learning curve and develop the correct mindset, philosophy, and strategy of an upper echelon investor. In the book, the authors hold nothing back and reveal exactly what it takes to be successful as an investor and operator or Commercial Real Estate properties.

Developments in the sophistication of global real estate markets mean that global real estate investment is now being executed professionally. Thanks to academic enquiry, professional analysis and entrepreneurial activity, backed by the globalisation of all investment activity, there is now an available body of material which forms the basis of this scholarly but practical summary of the new state of this art. The measurement, benchmarking, forecasting and quantitative management techniques applied to property investments are now compatible with those used in other asset classes, and advances in property research have at last put the ongoing debate about the role of real estate onto a footing of solid evidence. The truly global scope and authorship of this book is unique, and both authors here are singularly well qualified to summarise the impact and likely future of global innovations in property research and fund management. Between them, they have experienced three real estate crashes, and have observed at first hand the creation of the real estate debt and equity instruments that led to the global crisis of 2008-9. Global Property Investment: strategies, structure, decisions offers a unique perspective of the international real estate investment industry with: a close focus on solutions to real life investment problems no excessive theoretical padding a target of both students and professionals highly qualified dual-nationality authorship With many cases, problems and solutions presented throughout the book, and a companion website used for deeper analysis and slides presentations (see below), this is a key text for higher-level real estate students on BSc, MSc, MPhil and MBA courses worldwide as well as for practising property professionals worldwide in fund management, investment and asset management, banking and real estate advisory firms.