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Dermody Busy Rebuilding, Reshaping Portfolio

LAS VEGAS-The Reno-based company that hit the reset button last year with a $1.8-billion portfolio sale is now a more diverse, self-funded operation.

By Brian K. Miller | Updated on September 07, 2008

LAS VEGAS-Par Tolles, previously a principal and Nevada area director with Trammell Crow Co., has been a busy man over at Dermody Properties. In the year since Michael Dermody sold off the bulk of his joint-venture portfolio in a $1.8-billion transaction and then hired Tolles to reinvent the Reno, NV-based company as a self-funded, more diverse operation, the company and its employee partners have invested $50 million of their own equity in the effort.

The money has been spent on developing some of the 717 acres of land it held onto, taking down some of the additional 700 acres it had under option, and acquiring existing assets for cash flow and value-add conversions. Since selling the 24.7 million-sf portfolio it had created in partnership with CalSTRS in July 2007, the company has developed seven new speculative industrial buildings totaling 2.9 million sf, acquired 70 acres of additional land and 323,000 sf of existing properties.

“Michael’s plan was to recapitalize the company, keep all the offices open, bring the company’s employees into the fold as partners and hold back or buy enough land to continue to develop while also acquiring existing assets for cash flow,” Tolles says. “He hired me as president to oversee the initial development and expansion of the company going forward.”

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