SOUTHEAST CAPITAL ASSET MANAGEMENT (SCM)

The national trend by real estate owners and investment management firms is to award the asset management contract for their portfolio to a consortium of professional managers.  This underlines the trend of increasing specialization within the real estate industry as it continues to deal with the challenges facing the sector. Ultimately, it allows the owner or investment management firm to focus on its main line of business, and avoid spending in-house resources on secondary services.

Southeast Capital Management (SCM) offers years of ownership, development, and management experience, so we manage more expansively from an owner’s perspective. This attitude and experience is apparent in every aspect of our asset management operation.

Here are some examples of what this means to you:

  • We comprehensively study the surrounding competition
  • We obtain the maximum value for every dollar spent
  • We keep you constantly aware of changes in the market place
  • We thoroughly understand the importance of managing cash flow
  • We manage your asset to ultimately increase your value over time

 

Many of our investors and clients have leveraged the value of our asset management, investment, development and construction services.

The Southeast Capital Management Advantage:

SCM offers a variety of asset management services including short and long term planning, repositioning, project & construction management, marketing and leasing, brokerage, reporting, acquisition and disposition of real estate.

Our integrated expertise provides in-depth solutions to assist owners, lenders, and investment managers by enhancing the value of their assets. SCM’s commitment to our clients is to evolve with the ever changing real estate business by providing ‘solution based’ strategies.

Acting as your asset manager, our mission is to:

  • Fully understand client goals and objectives
  • Collaborate in the blueprint of value-added strategies and outcomes
  • Facilitate the seamless execution of these strategies

 

Our tailored strategies utilize our specialized services that are geared to manage risk, preserve capital and investment value, create value, maximize asset performance, and ultimately enhance asset value.

SCM ensures their clients benefit from the comprehensive knowledge of its senior team of advisors, managers and alliances, which consists of some of the most experienced and uniquely talented real estate professionals in the industry. Our award-winning team has consistently demonstrated an ability to recognize and capitalize on emerging trends in marketing and management of real estate.

We apply our professional credentials and expertise to create the highest value within our real estate portfolio.

 CASE STUDIES

Gramercy Townhomes (Successful Workout)

The Gramercy Townhomes consists of two phases, and was planned for approximately 130 townhome units with a community pool. The first 65 units were built in Phase I and commenced sales in August 2007. This was the beginning of the current real estate market collapse. Due to the slow sell out (17 units sold between August 2007 through May 2009), and very poor market conditions, along with severe pressure and non-negotiating tactics from the construction lender whose construction loan became due, the project completely stalled. Southeast Capital designed a workout strategy as well as an aggressive sales & marketing plan, and by August 2009, SEC was successful in getting the bank debt taken out.

Alleviating the financial pressure by getting the project re-capitalized, an aggressive marketing and sales plan, and adjusting the home prices to a level acceptable in the market the project sales have picked up dramatically. There have been 25 sales (20 of them closed) from September through December 2009. This activity has created new energy and great momentum for the project, and it is anticipated that the project will be sold out within the first quarter of 2010.

Woodstock (Contract for Deed Financing)

The project consists of single-family homes, town homes, condominiums and retail. SEC and an affiliate purchased the note collateralizing the condominium, seven housing units and retail located on the bottom of one of the two condominium buildings in November 2008.  The business plan assumed selling all of the single family, remerchandising the sales center and models, rebrand the property, stabilize the HOA, reduce the HOA fees through renegotiating many shared costs between the master and the condominium, create a new website and create new marketing collateral before the end of August.  We accomplished all of these objectives except for one remaining single family house sale.  The business plan on the condominiums was to sell four in the first year.  Currently we have closed on one condominium and have three additional homes under contract.  In addition, we held back on spending marketing dollars until September of this year given our feel for the market conditions.  We saved $60,000 by delaying our launch.  The other obstacle that we encountered was the lending market for condominiums for all purposes dried up in 1Q2008.  We spent 2Q2008 working on financing alternatives and started offering a Contract for Deed in September.  This is a self financing program on a short term basis and it will allow us to obtain FHA approval once we get three additional contracts.   The home owners will then be required to refinance and we will exit the self finance business. 

Soleil Laurel Canyon (Bankruptcy Purchase)

This project is a former Levitt & Sons “Seasons” project that went into bankruptcy. SCP was successful in purchasing this 728 unit highly amenitized active adult master planned community. Based on a comprehensive market study, creating a realistic business plan, re-branding, marketing and sales plan, and intensive management of the HOA and full service amenity this project is now vibrant and selling at a moderate but steady pace. This project required significant interactive engagement with the existing home owners.  They had purchased in many cases their final home given this is an age restricted asset and then the community went into bankruptcy.   We held town hall meetings to discuss their concerns,  created surveys on many service and use issues, brought in a third party consultant to help develop an in depth understanding of the target market and product preference based on input from 60 of the current residents and 100 prospects, expanded the clubs from 36 to 48, re-merchandised the models, added bocce ball courts, enhanced the landscape garden and created every marketing piece as if the property was a new development including renaming the asset.  We accomplished all of the above by the end of May but held off on the official grand opening until the end of July as we didn’t feel the risk/reward in spending marketing monies was warranted.  Since July, we have contracted 14 homes and five have closed.  Of the homes we have contracted, seven are presold and we are building five of these through our single family builder partner.