All Forum Posts by: Christina Vandivier

@Soh Tanaka I don't necessarily need someone to specifically call-out their company and discuss their fees. However, I do believe that there is a standard that our industry is charging for these fees, as we all have to stay competitive, and was curious to see if anyone on this forum had input they would like to share. I'm sure most people on here have years of experience, likely with a variety of companies and asset types.

@Greg Dickerson

Thank you! This is what I am finding for the most part, although larger multi-family properties seemingly are closer to the 2%-5% range.

RE your comment on development, you're correct. PM's don't usually have any overlap with development. However, our company owns and manages all of our existing assets, but we also develop raw land as well. We have several owners working on different development projects, and a few of my team members (Project Manager, Director of Development, SVP Construction and Engineering) oversee that process. 

I am working on a rather large project with my company, which includes getting all of our owners to agree on management fees to charge for each property. Our management services includes single-family/town homes, multi-family (over 800 units), commercial (large >100,000 square feet and small <5,000 square feet), land development, and office space.

One of the primary reasons for this discussion is because the various members of ownership do not agree on what is an 'acceptable' fee to charge for management of their properties. As a result, I am seeking input from multiple outlets and hoping to see what others in the industry are charging for their management fees in the following areas:

Property Management for:

    Large commercial

  Small commercial

    Multi-family

    Single Family / Townhomes

Asset Management

Development

I've already met with some of the larger fish; Bozzuto, Paradigm, Gates Hudson, but feel well-rounded research should consider multiple factors, including company size.

If you also know of any databases where I could search for this information, that would also be helpful! 

Thanks in advance!

I manage a mixed-use building; 299 apartments and 14 retail spaces. The owners purchased the property in 2011, so it is fairly new. They had 3 years of interest only followed by 10 years of principal/interest payments. Their maturity date is 3/2023, at which time they'll either need to pay the remaining balance or refinance. 

They are having me work on a 20-year capex budget and a valuation of the property, so that we can begin to look at our options. Rates are actually great right now, but who knows what 2023 will look like (aside from looking at forecasts and assuming they'll be right for the sake of the scenario). As part of this project, I am looking through different loan scenarios so that they can get an idea of what to expect in a few years. However, though I have 8+ years experience in property management, I have never been involved in the commercial loan process itself. I really want to make sure my numbers are as close to accurate as possible.

At the maturity date, we will have 40% in equity (based on the original loan amount). Depending on what it appraises for, it could be more or less than that. My main question here is: What is a realistic down payment for a commercial refinance? If our LTV is 60%, will we need to put much down, if anything, if the standard LTV is 75%?