DENVER, CO - The combination of lower rental rates and rising vacancy rates is causing decreases in value, resulting in significant losses for holders of multifamily debt and equity. As the larger wave of overvalued assets and loan maturities sweep the market, the situation will continue to worsen long after the recession ends and is predicted by some to persist until 2015. In response to the growing need for experts who specialize in the complex multifamily market, industry leaders Mike Kelly and Bill Leseman today announced the launch of Caldera Asset Management.
"The financial status of the multi-family world is very similar to the residential world, just a few years delayed," said Mike Kelly, president and co-founder of Caldera Asset Management. "Pushing the problems down the road may work for some multifamily assets; however, that comes with risk as the great flood of overvalued assets is ahead of us. In order for property lenders, owners and equity investors to make good decisions, they need to fully understand the issues with the underlying operations, sponsors, markets and financing options in a fast-shifting environment."
Based in Denver and Atlanta, Caldera Asset Management is a national consulting firm exclusively focused on multifamily assets. The team's combined experience in asset management spans decades, encompassing over 5 billion dollars in transactions. In addition, Bill Leseman, chairman and co-founder, is a member of the Institute of Real Estate Management where he holds the Certified Property Management (CPM) designation.
"Multifamily is a specialized asset class which requires extensive experience to successfully manage turnaround situations. Transactions are increasing in size, complexity and cost. Therefore, engaging the right, objective talent, capable of immediate execution, is essential to solving the problems and mitigating losses," said Kelly.
As a national firm, Caldera Asset Management provides a unique local market expertise focused on swiftly addressing clients' problems using tailored solutions. "Significant differences exist between geographic areas and asset classes," said Bill Leseman. "We have strong relationships with vendors, service providers and brokers in local markets enabling customized, efficient, on-the-ground and complete solutions - ultimately saving time and money for our clients."
Caldera works with RAM Partners, LLC, an independent employee-owned apartment property management firm, to provide experienced on-the-ground management virtually anywhere in the country. RAM Partners currently manages approximately 29,000 units and is an Accredited Management Organization(R) (AMO), an honor awarded to companies which exhibit experience, financial stability, integrity and ethics. This designation is currently awarded to only six percent of all management companies nationwide.
Source: Caldera Asset Management