Resource Real Estate Holdings

Project Outline

Resource Real Estate Holdings, Inc. (Resource) invests in and manages real estate investment vehicles on behalf of its own and for outside investors and operates the Company’s commercial real estate debt platform.  As a result of the deteriorating market, Resource assumed control of a challenged 48,000 square foot, mixed-use property, located in Philadelphia, Pennsylvania, when the investor/operator failed to perform.  With the keys handed over in January 2009, Resource engaged SREA to assess the situation, restore operations and enhance the property’s value.

Services Provided

  • Conducted a comprehensive and well-executed transition plan
  • Conducted intensive physical and economic due diligence
  • Developed processes and procedures for accounts receivable/payable
  • Oversaw capital improvement programs
  • Performed cosmetic repairs and provided cost-effective furnishings to improve the property’s aesthetic appeal
  • Implemented leasing and marketing campaigns
  • Created building standard documentation to streamline leasing and management processes
  • Conducted property inspections with prospective tenants
  • Conducted lease negotiations
  • Established tenant relationship management

How SREA Added Value

With limited historical information as a result of the foreclosure, SREA immediately immersed itself into the assignment by first understanding the dynamics of the mixed-use project, which featured two (2) separate residential condominium associations, a marina, a restaurant and 24,000 square feet of vacant office space.  Fire/Life safety and structural issues that exposed the new owner to legal action were resolved within two (2) weeks of the assignment.  In addition, the implementation of a marketing and leasing campaign, coupled with tenant retention efforts, generated a newly signed lease within the first three (3) weeks.  The due diligence transition period and immediate response to establishing operational processes created the necessary framework to stabilize the asset and increase Net Operating Income (NOI).  Highlights of the assignment included:

  • Increasing occupancy from 65% to 89.9%
  • Increasing NOI – 2010 – $45,900 – 2014 – $55,600, annualized
  • Overseeing of $810,000 of capital projects managed