RENO, NV-Nearly two years removed from a $1.8-billion portfolio sale, Dermody Properties is venturing into the third party property management business as it continues to rebuild. One of its first assignments is a 600,000-square-foot build-to-suit in Logan, NJ, for Kimberly Clark.
DP Partners successfully managed some 25 million square feet for itself and CalSTRS prior to the sale. Since, with former Trammell Crow Co. principal and area director Par Tolles at the helm, DP Partners has rebuilt its portfolio back up to approximately four million square feet, three-quarters of which it built and the remainder it bought. In the near term the company will focus more on acquisitions and management than development but it has hundreds of acres of land in store, awaiting a rebound in the economy.
Given the company’s history of developing and adding value to its own portfolio and Par Tolles experience managing construction and property management operations for TCC, the addition of third-party management is a natural fit, if not also a necessary move to bolster revenue during the worst economic crisis since the Great Depression. “It’s a service that has always been a core value of DP and myself because it puts you in the trenches with tenants,” Tolles tells GlobeSt.com. “It not only allows us to apply our background in customer service, it breeds opportunity.”
Having previously managed such a large portfolio, Tolles tells GlobeSt.com that DP Partners has the internal accounting infrastructure and capabilities to accommodate all accounting systems, as well as a clear understanding of the comprehensive reporting requirements that must be carefully tailored to support each specific contract.
“DP is simply going back to its roots…and this time extending that to owners outside our company,” Tolles says.
In support of its third-party property management initiative, DP has added 20-year veteran Elizabeth Teske to lead its property management division. Previously a director of asset services with CB Richard Ellis, her experience includes the management of more than 15 million square feet for institutional investors, realty/pension fund advisers, private ownership entities and several Fortune 500 Tenants.
Tolles says the company will only be offering the service in its core markets of Reno, Las Vegas, Chicago, Philadelphia and Savanna, GA.
“This division is immediately positioned to provide unique expertise in every aspect of commercial real estate management,” Teske says. “We will hit the ground running and soon be a highly-regarded competitor not only in Nevada, but in other regions of the country such as Portland [OR], Harrisburg [PA] and Chicago.”