Why Asset Management Matters
Does your client have an asset-manager? What makes a good one? It literally pays to know
By Mark Zurlini, principal, Palisades Financial
in today’s economy, asset-management is a critical function in the
commercial real estate industry. it
tackles the oversight of performing and
nonperforming properties with the goal
of enhancing value and achieving maximum profitability for property-owners.
The asset-manager’s primary function is to
ensure that a property is generating an internal rate of return that equals or exceeds
the property-owner’s expectations.
When mortgage brokers are helping
clients find funding, it is essential to know
whether clients have an asset-manager, as
well as what qualities make a good asset-manager.
What they do
asset-managers oversee and orchestrate
all aspects of a property’s operation, from
acquisition to monetization. They occupy
a delicate position between the property-
owner and property-management aspects
such as tenant relations, budgeting, operat-ing-expense analysis and control, insurance
and real estate tax reviews, capital improvements, environmental conditions, green en-ergy-management programs, lease analysis,
debt analysis, and market awareness.
asset-managers can determine the
most-cost-efficient ways to increase profitability based on these aspects. although
they should also be knowledgeable about
AND INVESTMENT GROUP
all related professional disciplines, their
emphasis should be on monitoring and
coordinating activities in these areas.
in addition, they should have strong
data-management systems, a competent
in-house support staff, a capable group
of outside professionals, good cash-man-
agement and billing systems, and a strong
asset-managers must remain flexible by
adjusting to changing market conditions.
Throughout the process, they must fore-
see and plan for the big picture and also be
aware of and knowledgeable about the in-
vestment property’s day-to-day operations.
Creativity also is a major factor in successful asset-management because each
property presents different issues and
opportunities. it is crucial that an asset-manager have the experience to deal with
• Acquisition and Development
• Land — only with horizontal or vertical
construction (no land-only loans)
• SFIG can arrange equity participation
to facilitate a transaction in conjunction
with debt financing.
• Mixed Use
• Retail (Anchored and Unanchored)
• Office Buildings
• Single Family Subdivisions
• Golf Courses
• Office Condo
• Condo Hotel
• Special Purpose Properties
• LTV 60%-75% subject to property type
• LTC 65%-75% subject to project type
• Minimum loan amount for USA-based
transactions is $4MM USD.
For selected International transactions
the minimum is $10MM USD.
• Maximum loan amount is unlimited and
subject to underwriting.
Phone: 800.649.0311 or 801.944.4320
10421 South Jordan Gateway, Suite 600
South Jordan, Utah 84095
Real Estate Investment Bankers
How they affect the loan process
The troubled economy has resulted in an
increased demand for asset-managers.
Banks, private-equity firms and other dis-tressed-property owners are increasingly
seeking experienced managers with excellent credentials.
For mortgage brokers, it’s important
that their clients’ properties gain the best
value possible to produce the best outcome
for all parties.
an asset-manager can play an impor-
tant function throughout the loan process.
First, mortgage brokers must know who
operates and manages their clients’ prop-
erty, especially when submitting a loan ap-
plication to a bank or lender. Brokers also
must know the asset-manager’s history.
Throughout this process, brokers must
ask the right questions to submit a com-
prehensive application to the lender. They
should know everything about the prop-
erty — from how the management com-
pany has affected the property and how
much debt is associated with the property
to what kind of relationship the manager
has with the owner.
if the clients’ asset-manager is strong,
it’s important to point this out to the
lender. For example, it helps to show the
property has been operating at a profit for
a certain time or that the management
company has been responsible for a suc-
cessful turnaround. Lenders should know
that the property’s asset-management
company will be on top of any issues that
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Mark Zurlini, principal of Palisades Financial,
has more than 20 years’ experience in banking
and commercial real estate, including seven
years as a fund manager with Palisades. He is
responsible for underwriting, performing due
diligence and overseeing asset-management
operations. Zurlini is a graduate of Rutgers University and a member of the Mortgage Bankers
Association of New York and the Metropolitan
Mortgage Officers Society. Reach him at
email@example.com or (201) 894-5000.