IRVINE, CA—A 21-property retail and mixed-use property-management assignment to Colliers International's property-management division gives Value Rock Realty Partners a chance to concentrate in its core business, according to Colliers' managing director of investor services David Rowley, who will oversee the assignment. Rowley says the assignment “underscores the benefits of outsourcing management services.”
Value Rock has given the Colliers division the responsibility of managing a diverse list of properties ranging in size from 9.000 square feet to 108,000 square feet, including nine neighborhood shopping centers, a pair of restaurant properties, a single-use “big-box” facility, several centers that are being renovated or are in major lease-up phases and 10 branch banking facilities totaling 107,000 square feet that Value Rock leases to Bank of America. The total square footage for the assignment is 700,000 square feet.
Rowley tells GlobeSt.com, “One of the primary challenges we face when taking over management responsibilities on such a large and diverse portfolio is to make sure we understand deeply the clients strategy for the assets so that we communicate and coordinate clearly with tenants, clients, vendors and brokers with a bias toward action and execution.”
Eight of the nine retail and mixed-use centers are located in Orange County with another located in San Jose. Specifically, the properties are located in Yorba Linda, Huntington Beach, Irvine, Lake Forest, Mission Viejo and San Juan Capistrano, all of which were managed in-house prior to the agreement with Colliers. The bank branches are concentrated in Los Angeles County.
According to Rowley, “This represents a significant portion of Value Rock's investment portfolio in California, and it underscores the benefits of outsourcing management services. This new assignment will allow Value Rock to concentrate fully on its core business of property investment without the distraction of managing so many different kinds and types of retail centers.”
Among the property and asset-management services Colliers will provide are accounting and related financial services, lease administration, project and construction management for tenant improvements and renovations and general physical maintenance of the properties.
As GlobeSt.com reported in April, we spoke exclusively with Rowley when he first took on the role of managing director of the firm's investor services division. At that time, he told us, on a macro level, the US economy is improving and the number of transactions is increasing, so now is the right time in the cycle to be bullish.
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