We are known for, and are very good at turning around a failing business, but we are also able to take on a property that is running well and find ways to make it better.
Richmond, Va. (PRWEB) August 22, 2014
Owner-investors in a 155,000-square-foot office space portfolio in Richmond, Va., named Allegiancy their real estate asset manager, investor leadership announced this week.
Allegiancy, a Richmond, Va.-based commercial real estate asset manager specializing in office space, took over the asset management of the owners’ $15.6 million Richmond-based “Lardon Portfolio” in late 2013, following a $6.5 million equity raise.
The Lardon Portfolio includes three Richmond buildings located on Staples Mill Road and Falmouth Street and is more than 88 percent leased. Tenants range from medical, education, and real estate service companies, to research data companies.
“We are known for, and are very good at turning around a failing business, but we are also able to take on a property that is running well and find ways to make it better,” said Steve Sadler, Allegiancy CEO.
While the Lardon Portfolio was already well-leased, Sadler said, “any asset of this size has the opportunity to gain efficiencies and improve operations.”
Richmond has a vibrant economy and is adding jobs rapidly. Home to the Virginia Commonwealth University, University of Richmond and the Medical College of Virginia’s teaching and research campuses, as well as the Federal Reserve, Federal Fourth Circuit Court and the Commonwealth’s Capitol, Richmond is outperforming most major cities and the nation. And Virginia is one of the few remaining AAA-rated states.
“Managing an asset in a robust city like Richmond offers great opportunity to excel,” Sadler said. “This portfolio has about 10 percent vacancy, so there is upside for the owners in the improving leasing environment Richmond currently enjoys.”
As Sadler sees it, Allegiancy doesn’t just manage a building or an asset: rather, Allegiancy safeguards the retirement and financial health of the investors who entrust the properties they own to Allegiancy.
“For a lot of the people who have invested in these properties, especially those who were part of the recent capital equity raise for Lardon, their investment represents their kids’ and grandkids’ college education money,” Sadler said.
For this portfolio, investors are looking forward to an 8.04 percent average cash return.
“Often these are the funds that they hope to leave as a legacy for their families one day, or the dollars they plan to live on in retirement,” Sadler said. “That’s a big responsibility, and one we take seriously.”
Many investors Sadler has worked with over the years, he said, are 70-year-olds who are still working because their other retirement investments haven’t generated enough income to live on.
“With what we’re doing, we’re able to give the investors seven percent returns each year. In other areas, they are seeing less than three,” Sadler said. “That can make a quality of life difference for our investors already in retirement.”
Allegiancy is also investing hundreds of thousands of dollars in state-of-the-art technology to continually enhance its ability to track maintenance and operations issues in the buildings it manages before they become capital expenditure problems.
“When we use technology to identify, for example, an HVAC unit that is running continually and uncover a small maintenance fix that then extends the life of that unit, we are directly saving investors money by preventing them from having to make large capital investments in their properties unnecessarily,” Sadler said.
Allegiancy has recently won new asset management contracts in Georgia, North Carolina, Florida and Ohio and continues to successfully manage a portfolio of top-performing properties.
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Allegiancy is changing the business of asset management for commercial real estate owners and investors. With an advanced technology platform and singular focus on serving as the owners’ advocate, the company brings fresh vigor to an often poorly understood business. Combining its proactive Value Assurance? operational rigor with an intense focus on cash flow and profitability, Allegiancy is expanding on a track record of more than four decades of success.
Headquartered in Richmond, Va., and led by a team of seasoned professionals and more than 100 years of experience, Allegiancy manages properties that have outperformed their peers by 45% since 2006. The company has more than $300 million in assets under management (AUM) and delivers clients attractive returns and profitable, hassle-free investments in commercial real estate.
More information about Allegiancy may be found at http://www.allegiancy.us.
To schedule an interview with Allegiancy’s leadership, contact Audrey Bevel at audrey(at)allegiancy(dot)us or 866.842.7545 ext. 204.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are based upon the Allegiancy, LLC’s (the “Company”) present expectations, but these statements are not guaranteed to occur. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. Investors should not place undue reliance upon forward-looking statements. For further discussion of the factors that could affect outcomes, please refer to the “Risk Factors” section of the offering circular dated January 14, 2014 and filed by the Company with the U.S. Securities and Exchange Commission on January 15, 2014. The offering circular, and any supplements or updates thereto, is available on the EDGAR system located on http://www.sec.gov.