LMS Commercial Real Estate, headquartered in Lancaster, PA, specializes in the leasing, management, sale, development, acquisition and construction of retail properties, and currently leases a portfolio of 6.5 million sq.ft. throughout DE, MD, NJ and PA. The company operates under both the LMS name, through which it offers its leasing, sales, construction, acquisition, development and tenant representation services, and as Property Management Alternatives, which houses the company?s property and asset management services as well as accounting, reporting, lease administration and financing. Since its establishment in 1991, LMS has set itself apart in its field not only with a full-service approach that provides clients with access to a wide variety of services under one roof, but also through a business model strictly focused on creating, maximizing and sustaining asset value.
A large portion of the company?s portfolio is located within the central PA region, spanning the area west from the Philadelphia metropolitan area to State College, PA. This region of the state includes growing communities such as Lancaster, York and Harrisburg, and is one of the fortunate areas within the U.S. to have historically remained strong during economic downturns ? with this recession being no exception. The relative prosperity of the area can be attributed to the area?s diverse population and its strong manufacturing, banking, agriculture and tourism sectors, as well as its proximity to major metropolitan areas and a relatively low cost of living.
In spite of the region?s resilience, however, consumer spending is still down there as it is throughout the country, and the effects of the macro economy still make their presence felt, according to Blaze Cambruzzi, COO of LMS. As a result of the recession?s impact on the area, LMS ? like most within the industry ? has had to apply its business model to new difficulties within the retail market. For example, local retailers have been particularly affected by the recession as their access to capital has been reduced, Cambruzzi said. This newfound difficulty for non-chain concepts has had a significant impact in secondary markets ? more so than in major metropolitan areas, he added, due to a tendency in secondary markets toward lower population density and household incomes, which has a substantial impact on sales, particularly for lesser-known, smaller retailers. Fortunately, he said, LMS has been able to face this challenge and continue to close deals for this tenant group thanks to the experience and relationships the company has developed and strengthened in all aspets of the industry, from contractors and architects to lenders, investors, retail tenants and landlords, as well as insurance providers and government agencies. These valuable relationships, Cambruzzi added, have been the result of the company?s integrity, its ability to deliver on its promises, and a commitment to mutual success for its clients and partners as well as itself.
Providing a wide variety of services has not only helped the company to establish this solid reputation throughout the industry, but also puts LMS in a highly advantageous position when making deals, as nearly all of a property?s or client?s needs can be addressed in-house. ?I don?t know of any other company that has this level of expertise in-house and services the secondary markets the way we do.? Cambruzzi said. ?We have a business model in place that has experts in every facet of the industry, and they?re utilizing that expertise in markets that are not major metropolitan areas. That?s what really sets us apart: If a tenant is coming into our market, when they come to LMS, we can deliver them, say, five stores in ?A? centers with basically the same leases and construction manager. When you bring it all together, it adds multiple layers of value for the client.? The company?s model also proves highly beneficial when securing financing for projects, he added: By having an active hand in so many aspects of a property, LMS is able to provide lenders with very thorough information about each site, increasing the likelihood of receiving necessary funding. ?We?re able to go to a lender and convey the complete picture, such as where the leasing efforts are, market conditions, etc., then draw on our own research to accurately describe the sensitivity of all the variables,? Cambruzzi said. The results are noteworthy: Within the past three years, LMS has secured more than $114 million in new financing.
The company?s tenant representation clients include Starbucks, Shoe Carnival, Denny?s and Family Dollar, among many others, and LMS will often provide representation outside of its primary region of operation in areas such as in New York, Michigan or Virginia, where its expertise in secondary markets helps retailers seeking sites outside of the major metropolitan areas. ?In a secondary market you?re going to have fewer stores, and location becomes even more? critical,? Cambruzzi said. ?If you?re only going to put one or two stores into an entire market, you have to get the right locations, and they?re not as easy to pinpoint as they are in a major metropolitan area. It?s a combination of helping [a client] find the right general location, then digging in your heels, finding them a site that can meet their needs in that marketplace and, finally, getting a deal together.?
The new development division of LMS has remained active during the past several years, having developed more than 650,000 sq.ft. in new projects since the recession began. The company currently has a number of projects in the pipeline, including a strip center in Carlisle, PA, two projects in Lancaster, PA and a 180-acre development in Lebanon, PA. ?We?ve been working on that for a few years; it?s a very large development, the biggest of its kind to hit the county,? Cambruzzi said of the Lebanon site. Since 2008, the company has developed or redeveloped a variety of projects, including the redevelopment of Queensgate Shopping Center, located in York, PA. The company acquired the site through its strategic partner, Blackford Development, razed a portion and rebuilt it with a Frank?s Movie Theater as the anchor, while also strengthening the tenant mix. Other projects in recent years have included the development of three grocery-anchored shopping centers in the region, as well as South Hanover Shopping Center in Hanover, Main Street Center in Mt. Joy and The Shoppes at Landis Valley in Lancaster.
The company?s portfolio of stabilized properties boasts an occupancy rate of around 95%, Cambruzzi said, thanks to its pro-active approach toward maintaining and growing value at each site. ?You can?t overload a property with food, or services; you have to have the right mix, and not fill a space for the sake of filling it.? It?s also vital to collaborate with landlords and tenants to provide consideration for both parties, he added. ?A great deal at a bad location isn?t good for anybody. A tenant may get a cheap rate because the landlord just has to have them, but if it?s at the wrong location for them, it doesn?t matter; the tenant will fail. The way things are right now, if we just try and position deals based on one party winning, both parties will lose in the long run. The landlord?s rent is derivative of the sales a property can generate for each retailer;? it?s our job to ensure the property sustains its ability to attract consumers and drive sales for its tenants. In this manner, the tenant gets solid sales, the landlord gets their best rent, and we can sustain that for a long period of time.?
Looking to the coming year, Cambruzzi said that there are still challenges ahead, but that the right businesses will continue to thrive. ?For a well-run, forward-thinking company, this is a great, great time to expand a business and grab and grow market share,? he said. ?Sam Zell said back in the early 1990s to ?Stay alive ?til ?95,? and in 2009, he reminded us of the cyclical nature of real estate and concluded a statement reflective of overleveraged properties with ?Get clean by 2013.? I believe he is, once again, right on the mark, and that the second half of this decade will be very promising.?
For more information, contact LMS Commercial Real Estate, 120 North Pointe Boulevard, Suite 301, Lancaster, PA 17601; 717-569-9373, Fax 717-560-9909; Web site: www.lms-pma.com.
michael oher craigslist killer showtime raiders the prisoner the prisoner gene simmons
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.