SANTA FE, NM-In September 2013, Michael Mahony was named CEO of Rosemont Realty LLC, a commercial real estate company investing primarily in office product located mainly in secondary markets. In this second of a two-part interview, Amy Wolff Sorter with GlobeSt.com chats about Rosemont Realty's future with Mahony.

GlobeSt.com: You've recently been named CEO at Rosemont Realty. Why did you decide to accept the job?

Michael Mahony: There was a succession plan in place put into action sooner than was originally planned when the former CEO Dan Burrell was presented with an opportunity outside of the commercial real estate industry. The goal from the beginning was to have a strong, deep leadership team in place and a thoughtful succession plan.

GS: How does your previous experience equip yourself for this job?

MM: During the past 3.5 years, I've worked side-by-side with Dan to transform Rosemont into a significant real estate player in the US, not only by adding a considerable number of assets, but by developing a strong asset management platform with a top flight team and implemented a re-dedication to tenant service.

GS: Is Rosemont in expansion mode?

MM: Yes, Rosemont is definitely in expansion mode. We have a good strong lineup of investors that view our select secondary office strategy favorably, so our ability to meet our investors' needs will allow us to continue to grow the company and its assets under management. We also believe strongly in the opportunities and market timing in our target markets.

In addition, as we continue to grow our assets under management, we'll continue to make enhancements to our management platform. We have brought management and leasing in-house in markets where we can experience economies of scale and when it serves our investors' interests. We will continue to look for similar opportunities to integrate management and leasing as circumstances allow. There are some markets, however, where we will continue to use our valued business partners to provide third party management and leasing. In the end, it's all about how to best meet the needs of our tenants and investors.

That said, we're a real estate company that will always look to dispose of select assets on an opportunistic basis or when we feel an asset has reached maximum value.

GS: Speaking of which, what is your typical hold period for a property?

MM: Our typical hold period is a minimum of five to seven years. Based on our investors' needs and desires, we can hold for a longer period of time. Some of our investors like the current return and don't necessarily want to flip out of one core property to invest in another core property. We like to hold on to properties through at least one lease renewal cycle, so we can maximize the value for our investors.

GS: What is your forecast for the commercial real estate market?

MM: Now is a great time to be an office landlord. General improvements in the economy and employment growth inform our belief that real estate fundamentals will continue to improve. Though the market is still a bit sluggish, as we approach lease renewals in the next two to five years, we believe supply and demand will be in equilibrium and perhaps tilted in the landlord's favor in many markets, and thus allow us to obtain lease terms that benefit all parties, particularly our investors.

We are mindful that it will take an adaptive landlord to meet the changing needs of the corporate office tenant.

GS: What are your plans for the company, specifically in 2014?

MM: Our plan in 2014 is to launch the Rosemont Real Estate Acquisitions Fund II investment program, which will include a new round of fundraising and acquisitions. RREAF II follows on our success of our first RREAF program that closed in 2013. Likewise, we're going to continue to build and enhance our corporate and real estate management platforms, implementing an integrated approach to all aspects of our business.

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