One way to answer the question of what real estate asset management is is to first address what it isn’t. Many confuse commercial asset management services with portfolio management, although the two are quite different.
Portfolio management is fund management, and involves generating a cash flow for properties for a company or investors. Real estate fund managers, or investment managers, want to optimize the value of the properties in their (or their client’s) portfolio, through the acquisition, selection, divestment, and management of a portfolio’s real estate assets.
On the other hand, real estate asset managers engage in the post-closing monitoring of loan performance and processing of transactions. Any change to a property or loan post closing typically requires the review and approval of the Lender. Asset managers work with CMBS Lenders, Agency Lenders, and Balance Sheet Lenders, to perform the underwriting of these types of requests. Additionally, they produce commercial real estate management reports and Business Opinions of Value, providing critical insight to Lenders and Borrowers as it relates to loan and property performance.. Asset managers enable Lenders to assess, as an example, if a proposed capital improvement on a given commercial real estate asset should be approved or denied.
If you’re a Borrower, rather than a Lender, real estate asset management serves the function of providing the necessary support to meet increasingly stringent and complex reporting and compliance requirements. Over the course of the past several years, reporting to Lenders has become significantly more burdensome to investors. Real estate asset managers possess the experience of working with all types of Lenders, and they know how to expertly handle reporting requirements on behalf of investors.
What to Look for in A Real Estate Asset Manager
Finding a trusted expert in real estate asset management can be difficult. At Armada, we offer a number of services to Lenders and Borrowers in the domain of commercial asset management, including:
- Loan Reviews: Our customized commercial asset reports offer Lenders a clear picture of property performance and the future market outlook for multifamily and other commercial properties.
- Asset Status Reports: Geared toward potential investors, these reports focus on the structure of existing loans, the historical performance of the property, as well as its physical condition.
- Reserve Disbursement Processing: We review and assess documents regarding replacement or repair reserves.
- Annual Site Inspections: We employ a network of certified inspectors across the country who perform physical inspections on multifamily and commercial properties to identify deferred maintenance and capital repair concerns.
- Special Inspections: As mentioned above, we provide confirmation for required or requested capital improvements and repairs.
- Assumptions, Transfers, Changes in Collateral and Easements
What sets Armada Analytics apart from the competition in commercial asset management is both our ability to generate customized commercial asset management solutions for our clients, as well as our significant experience in the field. Our VP of Commercial Asset Management, Andrew DiGirolamo, previously served as a portfolio asset manager, which gives him intimate knowledge and ample experience in understanding all the headaches and hassles Lenders face when it comes to reporting and compliance requirements.
When it comes to selecting a real estate asset manager, you want someone with ample knowledge and experience, which is precisely what we, at Armada Analytics, pride ourselves on.
Real estate investing is complex, and asset managers possess the knowledge to guide Lenders and Borrowers through the entire lifecycle of their investment in a variety of ways—from analyzing the value of a property to navigating the intricacies of reporting.
Interested in Becoming a Real Estate Asset Management Analyst? Contact Us Today!