Asset Management
Sealy & Company is recognized as a leader in real estate management. There are numerous reasons for Sealy’s historic success; however, the firm’s fundamental business principle is to preserve and enhance the value of real estate assets.
Each investment requires a strategic, market-driven perspective, and Sealy provides this by implementing a comprehensive set of services, analyses, and reporting for each property under management. Sealy’s experienced staff of highly motivated professionals, backed by information and communication systems, provides the needed support and resources required to maximize the potential of every Sealy managed real estate investment.
Management for a portfolio begins with a transition meeting between the owner / asset manager and Sealy’s Asset and Property Management Division personnel to review the details of the investment property. The primary focus of this meeting is to review the investment strategy, pro forma operating and cash flow assumptions, debt terms and structure, and the return expectations. The owner, asset manager and property manager also review information related to the revenue stream, such as market leasing rates, leasing terms and conditions; leasing hurdles; capital expenditure plans; significant loan terms such as lender required repairs; escrow requirements, and other significant loan covenants. This information provides the management with the information necessary to understand the strategy and develop detailed five-year forecasts that incorporate the underwriting of lease rates, operating expenses, lease-up costs, capital expenditures and debt service. Management then begins to execute the budgets and thereby the strategy to provide the expected returns.
Our Asset Management team maintains timely, detailed perspectives on operational and strategic aspects of all investments through:
- Executive reviews with management of monthly and quarterly reports of financial and operating performance and trend data
- Scheduled monthly calls with leasing agents to stay abreast of market conditions and activity, and to drive the leasing process with agents by setting specific monthly leasing objectives
- Periodic re-forecasts of operating performance and cash flow based on significant changes in trends of occupancy, market rates, capital expenditures, or extraordinary expenses
- Periodic reviews of valuation, including annual internal opinions of value considering market conditions and pro forma re-forecasting
- Debt modeling and evaluation as warranted based on changes in market terms and conditions to evaluate refinancing scenarios
- Capital plan forecasting and monitoring, including collaboration between investment officers and property managers to address ongoing loan escrow and draw management
- Management and coordination of lender lease and capital expenditure approvals and funding
- Consistent contact with debt markets to stay abreast of refinancing opportunities
Sealy’s asset management services also include an annual re-evaluation of each asset’s strategy and business plan. The team assigned to each asset reviews market conditions and positioning; and the physical, operational, and financial status of the property; then strategically refines the investment strategy and goals. A full-service team of professionals in property management, marketing, leasing, development, engineering, financial analysis, valuation, market analysis, and accounting implement this plan. Under the guidelines of the strategic plan and the annual business plan, the team manages efficient and effective day-to-day operations while maximizing long-term value.
This Sealy plan thoroughly manages costs to maximize cash flow and return on deployed capital while optimizing the value of assets over the life of the investment.