Asset Management


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Parmenter Realty Partners, a developer of many high-profile real estate assets, has a well-earned reputation for quality and performance. Parmenter has acquired, renovated and developed premier office and commercial projects in major markets throughout the United States.

As an integrated real estate operator and investment manager, Parmenter’s asset managers are fully involved in the acquisition due diligence process, development and implementation of unique value enhancement strategies, cash flow management and disposition. Property managers report directly to the asset managers, instead of a director of property management as is customary, which results in the property load of the asset managers to be well below what is normally seen in the industry. The goal is to ensure that each property level decision improves the overall value of the asset within the context of the overall portfolio.

 

Repositioning

Parmenter Realty Partners’ commercial office buildings are located in major urban areas, MSAs of one million people or more. They are typically in central business districts and infill submarkets where land costs and the need for structured parking serve as barriers-to-entry for new development. In many cases, the buildings have been in some state of distress prior to acquisition.

Parmenter Realty Partners adds value to the building through redevelopment and repositioning, while the asset managers work to stabilize and increase occupancy at market rents, as well as working with property management to professionally oversee the day-to-day operations of the building. In addition, Parmenter is committed to corporate responsibility and sustainability, and incorporates holistic management principles to the operation of its buildings to reduce the impact its buildings have on the environment.

Redevelopment projects are located in live, work and play neighborhoods in major urban areas in order to capitalize on the growing demand for metropolitan living experiences. Parmenter Realty Partners believes a growing market exists for people who want to live and work in areas close to the existing urban core, near recreational facilities such as arenas and malls, and civic amenities such as public parks, museums, and entertainment. The company also looks to leverage public transportation options to the extent they exist in close proximity to the investment.

 

Risk Management

Parmenter Realty Partners manages risk to a level that can significantly reduce investment, operational and management risk through a series of checks and balances. Within Asset Management there are a several points of focus:

  • Cost basis relative to competing properties as well as new construction costs
  • Asset specific financing
  • Renovation costs
  • Tenant risk – credit and rollover
  • Lease-up risk – time frame and market dynamics
  • Rental rates
  • Exit pricing

Risk associated with an investment is mitigated through the discipline of purchasing the assets at the right basis, combined with placing an appropriate level of debt on the property and with appropriate interest rate hedging. This strategy includes effective execution of financing, and Parmenter Realty Partners has developed strong relationships with many qualified lenders. Changes in the debt markets can create challenges if the price or availability of debt becomes restrictive. Therefore, Parmenter continually monitors these costs and availability of proceeds by utilizing the services of Commercial Mortgage Brokers.

An important component of this strategy is the transformation of assets into prime institutional-quality buildings. Parmenter Realty Partners’ development skills and budgeting only capital accretive to the investment, have allowed the company to achieve this goal. The historical track record of the company speaks to the success of this strategy.

 

Leasing

Parmenter Realty Partners' asset managers oversee a team of leasing professionals and work closely with acquisition, property management, and administrative professionals to ensure that the investments’ objectives can be met or exceeded. Parmenter has extensive experience in its target markets, and develops strategies that enhance property values by maximizing lease rates in addition to reducing operational costs.

Parmenter Realty Partners engages the most successful leasing brokers in the markets, and maintains relationships with top brokers representing tenants through regular communication, outreach, and marketing. In order to determine realistic lease-up and rental rates projections, Parmenter uses internal research and local broker knowledge to track rents, supply dynamics, and tenant demand. In addition, tenant credit is evaluated prior to lease execution, as well as throughout the lease term. It is important to be aware of the current financial condition of tenants in order to prepare for unanticipated vacancies and the capital needs associated with re-letting the space.

The tenant retention ratio achieved by Parmenter Realty Partners has generally exceeded the industry average, a direct result of a high-level of customer service. Annual tenant satisfaction surveys are used to better understand what tenants are looking for, and the use of web-based tracking platform for service requests allows tenants to contact the building staff directly for any request they might have. This proactive approach has yielded significant financial returns, demonstrated though reduced operating expenses, cost control measures, portfolio optimization and increased profits and exit values, resulting in greater returns to the company’s investors and partners.

Being an active participant in the capital markets, both as a buyer and a seller, Parmenter Realty Partners is well informed of market pricing levels. For this reason the firm does not rely solely on third party opinions of asset value, but instead take into account both our first-hand knowledge and available market data in making these decisions.