Asset Management
Flagship Healthcare Properties provides asset management services for a portfolio of more than 3 million square feet of primarily healthcare properties. As asset managers, our focus is on the property as a financial asset and the recommendations we present to owners and clients are those that impact a property’s financial performance, with an eye toward both short-term cash flow and long-term appreciation and value-creation. Every asset is unique and requires an ownership mentality that remains mindful of market changes and opportunities, economic factors that affect tenancy and the necessary knowledge and relationships surrounding financing and capital markets. Flagship’s role is to act on behalf of owners with a focus on increasing the value of each asset through a customized strategic asset plan.
Our clients include real estate funds, family offices and foundations, individual owners, institutional investors, and accredited private investors, each of whom turns to Flagship to act on their behalf through a property’s life cycle.
Some of our Asset Management Services include:
- Property level enhancements and capital improvement recommendations
- Market level positioning and competitive analysis
- Budgeting oversight, distributions and financial reserve recommendations
- Selection and management of third party managers, leasing agents, and vendors
- Brokerage representation involving lease and sale transactions
- Coordination and oversight involving contracted tenant build outs and capital improvements
- Regular property visits to build and maintain optimal tenant relations and coordination with property managers
- Consultation with established lender network and analysis of financing or refinancing alternatives to ensure the ideal financing structure is implemented
Starwood Capital Group
Southeastern USThrough an industry contact, Flagship was introduced to Starwood Capital Group, one of the largest institutional real estate investors in the country with assets under management exceeding $60 billion. When Starwood decided to invest in medical real estate, it called on Flagship to assist its efforts in the southeast formulating a bid to purchase an MOB portfolio exceeding $825 million.
We performed cash flow projections, identified and analyzed sales and leasing comps, generated capital spending and replacement cost estimates, modeled operating expense projections, coordinated property tours, and conducted market studies. Particularly helpful to Starwood was the development of a SWOT analysis of each portfolio property and providing an overall understanding of the medical office sector. We revealed six properties with risks that exceeded Starwood’s underwriting standards, resulting in their removal from the portfolio bid.
Upon winning the bid, Starwood selected Flagship to provide property and asset management services for its Southeast U.S. medical real estate assets. Our responsibilities include property management and leasing oversight, property accounting, tenant improvement capital spending management and identifying creative ways to maximize the cash flows and values of each property. For example, through our efforts and supported by local brokers, we successfully leased space beyond one of the property’s static vacancy assumption, thereby creating additional value.
Harrison Street Capital
VirginiaHarrison Street Capital acquired three Class A medical office buildings totaling 157,000 square feet in the Midlothian, Virginia market, anchored by a dominant Catholic-based healthcare system. The buildings were acquired from the original development firm, which was retained as property manager.
The original developer subsequently decided to exit the healthcare real estate market, leaving Harrison Street Capital and its properties without qualified staff to properly manage and maintain them.
Harrison Street Capital requested a proposal from Flagship to provide property management, vendor management, operating and capital budget planning, financial reporting and facility maintenance services. Upon selection, we created a 30-60-90 day plan, outlining and prioritizing our transition plan.
Within 30 days, Flagship:
- Performed an operational assessment of each property and gained familiarity with the properties’ operating and capital budgets;
- Met with each tenant and vendor to fully understand their needs, issues and expectations;
- Met with Harrison Street Capital to gain familiarity with its processes and procedures; and
- Established our web-based work order entry system, familiarized each tenant with our work order portal and entered all vendor contracts and building information into our system.
Flagship completed a seamless transition that implemented a hands on, day-to-day approach to building operations by hiring a new property manager, employing the existing building engineer and assuming all of the existing vendor contracts