When you start managing a property like 380 Park that’s already performing well, you get to think bigger. You can look for upside and think in a different way. You work smart to make things run more efficiently and build more value.
Richmond, VA (PRWEB) August 29, 2014
New investors in an 83,000-square-foot, $13.75 million office building on Park Place Boulevard in Clearwater, Fla., have selected Allegiancy to protect their asset.
Allegiancy, a Richmond, Va.-based real estate asset manager, is known for its ability to turn around office complexes on the verge of financial ruin.
“But we have proven that we are the asset manager to trust to safeguard a solid investment,” said Allegiancy CEO Steve Sadler.
Since taking over management of the property in December 2013, Allegiancy has executed on the property’s business plan and expects cash flows to remain strong.
“There’s no doubt about it: it’s challenging to walk into a commercial office building that’s struggling to find tenants because the building is falling apart, and the owners have no money to fix it. All the while, the bank is knocking on the door with a matured loan,” Sadler said.
“But when you start managing a property like 380 Park that’s already performing well, you get to think bigger. You can look for upside and think in a different way. You work smart to make things run more efficiently and build more value. That’s something we do very well at Allegiancy.”
The Clearwater property is a Class A office space developed in 2001 by Highwoods Properties, a public REIT. It has has been institutionally owned and managed. Located on nearly seven acres in the desirable area of Clearwater, the property is 98 percent leased to seven tenants. It’s centrally located in the Bayside submarket, an area rich with amenities including retail, restaurants and various services.
Clearwater is the 11th largest city in Florida and is part of the Tampa Metropolitan Statistical Area. Tampa boasts a population of nearly three million, making it the largest in Florida.
The new investors in the property selected Allegiancy in late 2013, shortly after a $5.65 million capital equity raise.
“We deliver asset management services to a large portfolio of stable assets, but many times we had to bring them back from the brink first – that is probably what we are best known for,” said Allegiancy’s chief operating officer Dan Simons. “380 Park is definitely the type of asset that we want and are proud to have in our portfolio. It not only provides stability to our portfolio and to our investors, but also allows us to showcase how our technology and operating systems bring efficiency, improved cash flow and value to a property.”
Without the need to focus on emergency efforts to turn around a property, at Park Place, Allegiancy immediately focused on the finer points of execution and “those things that we have always been good at,” Sadler said. “Many owners think that if there are no fires, then everything must be operating well at their buildings. In truth, we have never found a property where the effectiveness of the Allegiancy platform failed to add significant value to the asset.”
Much like a money manager, Allegiancy is a fee-based asset manager. Allegiancy creates the strategy and execution plan to maximize the value of commercial real estate investments.
“A commercial office building is a stand-alone small business. Yet in most cases, they do not have any leadership,” Sadler said. “No CEO. No president. No one onsite whose equity is at risk. Just a property manager making sure the place does not fall apart.”
As a result, a lot of commercial real estate assets underperform year after year.
“Not because they’re not good real estate, not because someone paid too much, not because the economy is weak,” Sadler said. “They’re struggling because nobody is running the business. That’s our job, to step in and provide that kind of strategic direction and tactical oversight.”
The effective, efficient tactical oversight Allegiancy provides properties is in part thanks to the strategic technology and analytics investments it has made. For example, closely monitoring spikes in electricity output using the latest tools helps Allegiancy identify potential maintenance issues before they become large capital problems.
Allegiancy has recently won new asset management contracts in Georgia, North Carolina, Virginia 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.