Good real estate investing, or reinvesting done correctly and done well, is a hands-on business whereby active and skillful operations have a direct and critical influence on asset performance. At Olshan Properties, we constantly drive value creation and have built one of the most successful private operating platforms in the United States.
The primary method to create value in real estate is through exceptional operations.
Whether multifamily, retail, hotel or mixed-use our operations team is consistently working towards a higher top-line revenue. We use a combination of historical analysis and current market fundamentals to establish income potential. Unlike a traditional budgeting process which is primarily based on historical analysis, our focus on total asset potential allows for the maximum possible revenue forecast and for our operations teams to configure strategies and programs to achieve higher-than-average annual NOI growth rates. Targeted marketing, ancillary income, incentive management, public/private partnerships and shared resource management all play a part in our focus on accelerating income growth.
From a valuation perspective, decreased operating expenses often prove as equally valuable as increased revenue. Our property management team balances scope and cost as we strive to provide the highest level of service for our tenants at the lowest possible cost to our investors, all the while maximizing property level returns. We take pride in our reputation as a high-quality owner/operator who understands the qualitative aspects of building maintenance and facilities management.
Over time, mature assets tend to fall to a common denominator within a marketplace, eroding value upon the influx of new competition. At Olshan Properties, our Asset Management and Development Departments place a heavy emphasis on capital reinvestment and measures the incremental return-on-invested-capital (IROIC) to keep our asset performance at the top of the value chain. This creates value through cap rate compression. FAR densification, mixed-use master plans, tenant expansions and consistent credit upgrades through re-tenanting are the basis of our programmatic goals.