ATLANTA—As growing real estate companies hit their stride in 2018, many will face structural challenges that make expanding in-house difficult. So says Bryan Gershkowitz, COO of RADCO, one of the nation's top opportunistic multifamily investors.
Gershkowitz is in a unique position to comment on the benefits of in-house structures with vertical operating platforms. That's because the company recently restructured to better manage its emerging property management division within its multifamily development business.
One of the keys to success, Gershkowitz tells GlobeSt.com, is to build 2018 predictions and trends into your business plan. As he sees it, if you're not consistently looking forward towards coming trends, you will ultimately fall behind your multifamily competition.
“Whether it is at the corporate or deal level, RADCO always tries to account for the trends we foresee,” Gershkowitz says. “This forward vision has resulted in our ability to be proactive and nimble while growing smart.”
Gershkowitz offers an example of a trend RADCO noted in 2017 that has carried over into 2018: The increase in both private and institutional equity in its target space—B and C class value-added multifamily. In some cases, he says, this has driven values on certain properties up even if the underlying investment fundamentals have not materially improved.
“Recognizing this trend has allowed us to remain laser focused on maintaining our underwriting standards, so we can continue to buy within the RADCO standard,” Gershkowitz says. “Similarly, having recognized that the value-added space is our long-term investment strategy, we have created robust learning and development, including two programs for recent college graduates.”
One of RADCO's strategies is a six-month rotational analyst program that prepares the next generation of investment, investment management, and capital markets professionals for RADCO. The company has also created an 18-month property manager training program for recent college graduates seeking a long-term career in property management. Gershkowitz says these programs will provide exceptional talent for RADCO in 2018 and beyond.
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