Modern Home Builder - Winter 2018 - 125
Realty Center Management
" Our forte is turning decent acquisitions into big cash cows for our investors."
DAVE MERCER, CEO
Realty Center Management's portfolio includes nearly 9,800 apartment units and some office buildings in California, Texas and Louisiana.
Realty Center Management Inc. turns
underperforming apartment properties into
long-term cash cows. BY TIM O'CONNOR
REALTY CENTER MANAGEMENT
www.rcmi.com / Headquarters: Culver City, Calif. /
Specialty: Real estate management / Employees: 375
When laws and regulations change, companies invested in
the status quo have two options: to get out or go all-in. An accounting company formed Realty Center Management Inc. (RCMI) in
1984 to manage a group of real estate holdings that served as a tax
shelter for clients. When rules regarding eligibility for depreciation
changed, the properties no longer carried the same tax benefit so
RCMI changed its focus to managing the properties to create value.
"The biggest adjustment we've made is emphasizing more value-added acquisitions as opposed to cookie-cutter-type stuff,"
CEO Dave Mercer says. The company's portfolio has grown to
nearly 9,800 apartment units and a handful of office buildings in
California, Texas and Louisiana. Most were underperforming multifamily buildings in good areas that RCMI purchased to improve.
The company's success stories include the Overlook at Blue Ravine in Folsom, Calif., a 512-unit development built in the 1970s.
Winter 2018 www.mhb-magazine.com