Kenwood Management Company

       quality acquisitions  •  effective management  •  above market returns


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Investment Services

Kenwood is constantly monitoring the Washington area sub-markets to identify and ferret out the most promising investment opportunities. Kenwood has developed a strong network of relationships with leading regional and national brokerage firms, financial institutions, and other owners in order to maximize our investment opportunities. Our ability and willingness to source, evaluate and execute complex transactions within a short time frame is one of our key competitive advantages in the marketplace. This capability is attributable to the diverse experience of Kenwood's three principals, who are also the decision makers in any transaction. Kenwood's core investment strategy focuses on properties that offer opportunity for enhancement rather than stable or "trophy" assets in the market. We focus on assets that may suffer from one or more temporary or correctable issues in their tenancy, physical attributes, capital structures, market position and/or management.

As property managers, our in depth understanding of real estate operations is the foundation of our ability to recognize existing issues, distinguish and quantify anticipated problems and price them accordingly into our acquisition model in order to minimize surprises and maximize our investor's returns. Our successful performance can be attributed to our thorough due diligence and effective risk assessment of each asset prior to acquisition. Utilizing legal, accounting, architectural and engineering professionals, we analyze in depth all aspects of a property prior to making a firm commitment. This provides assurance to sellers that we understand the asset, its risks, and the financial impact so that price re-trades are avoided. We are extremely proud that we have closed on every property that we have placed under contract.

Although Kenwood is generally a long-term investor, one of its primary considerations in evaluating any opportunity is the exit strategy. With an exit strategy in mind, we focus on making investments in quality, well-located assets that should appeal to a wide group of subsequent buyers. Every asset we have acquired since our initial acquisition in 1996 exceeds the forecasted investment return established with our clients. Many of our investors have repeatedly contributed capital in subsequent assets. In fact, some investors have participated in as many as 5 Kenwood acquisitions.

Investment Criteria

Kenwood Management Company, a private real estate investment and operating company, is actively seeking new investment acquisition opportunities. Since late 1996, Kenwood has successfully closed on six office/industrial and three retail properties totaling over 800,000 square feet. We have closed on every property placed under contract.  Kenwood maintains excellent relationships with commercial lending institutions and private equity sources, which enables us to provide responsive decisions and deliver on our commitments.

Property Type - Improved Properties:
Office
Industrial
Retail
Self-Storage

Geographical Area:
Washington-Baltimore SMA

Price Range:
$2 to $20 Million

Other Criteria:
Value Added Opportunities
Expansion/Renovation
Below Market In-place Rents
Will Assume Lease-Up Risks
Long Term Hold Period
General Partnership Interest

Asset Management Services

Kenwood's Asset Management Services are focused on serving our clients' investment strategy to achieve the highest possible returns. This process begins with our carefully canvassing, screening and understanding a market. When an asset is identified, it is thoroughly analyzed by our due diligence team to fully understand the asset's opportunities and risks. Strategies are then analyzed and tested for sensitivities.

After an asset is acquired, the strategy is implemented in a coherent manner through asset and property management as well as leasing. Asset Management Services interfaces with our investor base to keep them informed of the investment's progress and success in meeting its goals.

We seek to combine our extensive market knowledge, financial skills, and operating experience to produce expeditious and effective decisions to capture better acquisitions and leasing opportunities that result in higher returns for our investors.

Property Management

We actively manage our properties with a particular focus on the details. From meeting regularly with tenants to ensure their satisfaction, to qualifying a contractor for a particular project, to reviewing line-item variances, we believe that a well-managed property can create value. As a testament to that focus, our properties have produced higher occupancy levels than their competition. Our experience has taught us that every property tells an operational story. We strive to unlock the value of that story. Kenwood's principals are responsible for each property's overall performance and we are devoted to produce cost effective management solutions to each issue. We utilize Timberline® Gold, a leading commercial real estate package, to provide us with the accounting tools to budget, manage, and control property costs through focused revenue and expense procedures. Our delinquency rates are among the industry's lowest. We scrutinize each vendor proposal and service to obtain the most effective cost-benefits.

Our engineering services leverages up from a unique relationship with the George S. Hall Company, one of the leading mechanical service providers with both domestic and international offices. This arrangement provides our properties with exceptionally well-qualified engineers while virtually eliminating our manager's time related to personnel issues. Each property receives service from a professionally trained engineer and benefits from the resources of a large organization without the added cost. This organizational structure enables Kenwood to have "vertical" engineering management capabilities and specialized skills available to large organization, at a fraction of the cost. The combination of these items enables Kenwood to provide rapid response that consistently meets or exceeds our tenants' expectations. Our principals' active involvement helps our Tenants know that we will deliver on our promises.

Lease Administration/Accounting

Kenwood places a major emphasis on Lease Administration because accurate tenant billings are integral to cash flow management and better returns for our investors. We utilize Timberline ® Gold software to integrate our accounting and lease administration functions into one seamless unit. Leases are abstracted, options tracked, and any special requirements noted. Operating expenses, annual reconciliations and CPI increases can be calculated expeditiously and accurately. These functions provide for more efficient management and better information to assist tenants. Tenant billings, accounts receivable, and income and expense statements are available in real-time to managers and accounting staff. Our systems also track all tenants' options to avoid any overlapping rights. Timberline ® is also used as a forecasting tool to analyze the impact on a Tenant's pass-throughs when various projects are evaluated. This better assists us in understanding a project's cost implication to the property and its associated benefit to the overall investment.

Construction Management Services

Kenwood offers construction management services for common area and tenant improvement projects. Our principals' collective experience includes lobby renovations, cooling tower replacement, elevator modernization, garage rehabilitation, tenant improvement construction, as well as disaster/casualty restoration. Our investors and tenants benefit from the Kenwood owner/property manager relationship.

By performing construction management services for its owned assets, Kenwood is better positioned to make timely decisions in order to complete a project on schedule and within budget. Since we understand the asset better than a third party construction manager, Kenwood's focus is to create value as opposed to merely completing a project. This enables Kenwood to capture higher returns for our investors.

Kenwood's tenants are also better served. We are keenly interested in completing all tenant improvement projects as quickly as possible so that a tenant can occupy its space. Moreover, we understand that a tenant's positive experience during a construction project directly impacts their overall impression of an asset and influences their decision to extend their lease term.

 
 
5272 River Road, Suite 110LL, Bethesda, MD 20816
301.656.7790    Fax 301.656.4492