By Brad Pincus
In New York, people typically ask what one does for a living and my response, “asset manager,” generally receives nods of approval that are, more often than not, accompanied by blank stares. It’s a field that sounds more arcane than it is in actuality. But quite simply, real estate asset managers are the proverbial eyes and ears of property owners, whether institutional or individual. We are the guardians of their assets and it is our duty to ensure the properties are well maintained while maximizing their value.
Every day is different – at CBC Phoenix Asset Management, we currently oversee properties in 17 states nationwide, comprising more than 13 million square feet of various types of commercial assets. In each market, we have a local property management and leasing team that reports directly to us. Since we are in numerous markets throughout the country there are various nuances in market trends, vendors, laws and/or codes that we deal with, so it is important for us to be familiar with them and know where to find information relevant to the property at hand.
As asset managers, we are the final word on building repairs, tenant issues and tenant retention for every building in our portfolio. We perform all of the relevant bookkeeping services, from collecting rents to paying bills, budgeting and providing financial reports to our clients as well as the lenders. In addition, we review real estate taxes yearly, to determine whether appealing the current value is something ownership should consider.
Since our clients are private equity owners, in many ways working on their behalf is very personal. It is essential to understand their goals, which necessitates oversight on both macro and micro levels. We are always mindful of the budget and what we can afford to spend within a property’s cash flow. However, the challenge is that a property needs to be maintained at all times and we must determine which repairs or improvements are necessary, regardless of the occupancy and sometimes in the least opportune times. We try to address the immediate short term repairs with a long term plan in place to handle all the issues. Flexibility and creativity are vital in order to maintain a property in a strong, marketable position without negatively affecting its financial health.
We travel often to our properties and meet with the on-site property managers and local brokers, in addition to keeping in constant communication with them by phone or email. We also have numerous vendors in each market, so we make it a point to know the local vendors, firsthand to determine the most reliable. All members of the team understand that we are fully engaged in the property and ready to make decisions immediately. With the economic climate as volatile as it is, we make it a point to be responsive and engaged always. It’s no secret that the market outside of New York City has been soft, yet we have been able to renew numerous tenants and work on several new deals to maximize the value of the assets.
Whether it’s an iconic trophy property, such as the Woolworth Building in New York City, or a 640,000-square-foot office building in Southfield, MI, the skill sets are the same with expert teams in place. More importantly, the commitment is unwavering across the board.
REalta Group 
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