Pan American Properties Inc. has announced the addition of a new multifamily residential property to its asset management portfolio. The 110-unit building, located on Madison Avenue in El Cajon, expands the company’s footprint in the San Diego area.
The property was recently acquired by Pan American’s client, Clear Sky Capital. In addition to managing ongoing operations, Pan American is also managing interior and exterior renovations to modernize the building’s look and feel for its tenants. The work will be completed by Pan American’s in-house contractors.
President Rick Hoegler views the El Cajon property as a key part of the company’s growth plan. “We’re proud to be part of Clear Sky’s vision and looking forward to making their new asset the best it can be,” he said.
Turning an older property into a modern gem
When Pan American stepped in the 40-year-old property needed a makeover. “The asset had been a bit neglected,” Hoegler said. Pan American will be giving the whole property a facelift: installing plank flooring, updated laundry units, a fresh exterior paint job, and new landscaping. “We think tenants are going to really like the changes we have planned,” Hoegler said.
Pan American is already familiar with the Madison Avenue property thanks to its involvement with Clear Sky’s acquisition of the building. Throughout the 9-month deal process, Pan American supported Clear Sky with due diligence inspections and pro forma financials to assist Clear Sky’s decision making.
A deal that was long in the making
“This particular deal took a while to close,” Hoegler said. As part of its due diligence work, Pan American sent its licensed in-house general contractor to inspect the building for compliance issues, safety concerns, and potential maintenance problems. The results of the inspection work were factored into the team’s financial analysis.
Pan American helps its clients get a sense of comfort for a property’s financial picture today and where it can go tomorrow. “It’s important to us that our client has a complete idea of what an asset can do for them,” Hoegler explained. “If a deal isn’t going to help them meet their goals, we’ll say so.”
A property management firm for today’s economy
The Madison Avenue property reflects Pan American’s capabilities, which are unusual for a firm of its size. “Not many of our competitors put everything under one roof. In a deal like this, we have a complete understanding of what the client wants to achieve because we’ve been involved from the start. In the same way, the renovation crew shares the goals of the property managers, because they’re all part of one team.”
Hoegler expects to see his business continue to grow as economic conditions continue to shake up the real estate market. “The El Cajon property is a great example of how all the disruption in 2020 has created opportunities for investors in a position to grab them. The key is to keep a clear head and use the right information to make good decisions. We want to be a part of that process for our clients every step of the way.”
To learn more about Pan American Properties or the El Cajon property, call at (888) 754-9700, or send us an email at [email protected] to get started.