GM Properties has performed Asset Management and Leasing services on behalf of a private real estate investor since 2016. The client owned six industrial properties across Santa Fe Springs, CA that totaled 117,000 sf. In 2016, after the passing of the mother and father, the family’s children brought GM Properties on board to handle all aspects of the portfolio, including strategy, capital improvement decisions, eviction decisions, re-tenanting, budgeting, preparing taxes with the CPA, and allocating K-1’s. The heirs did not have any real estate experience, so they wanted to put the properties in the hands of someone they could trust. 

When GM Properties initially assumed responsibility for the buildings, there were many issues that needed attention — the father had previously been self-managing 20 total units, many of which were occupied by his friends who received lower than market rents. GM Properties developed a re-tenanting strategy and made many capital improvements including the major rehabilitation of some long-term units.

Since taking on the family portfolio, rent has increased by 40 percent, coming just under market value to maintain long-time family relationships with tenants. Meanwhile, the portfolio value has increased approximately 40 percent as well from its original $14M to $35M today.