The Portfolio Manager (Manager), Real Estate Asset Management performs all deal-making aspects related to management of the company's real estate assets, including leased and fee company-operated properties; franchised leased, subleased and assigned properties; third party disposition properties; and, corporate and regional office properties. The Manager, Real Estate Asset Management's fundamental goal and over-riding responsibility is to preserve as well as enhance the value of the company's real estate assets.
Aspects of this role include evaluating the real estate characteristics of a property and/or a market, determining property valuations, performing financial analysis, negotiating lease and purchase transactions and documentation in support of Lease renewals, extensions, terminations, rent restructuring, property expansions and remodels, and disposition of under-performing and excess properties. Each such transaction has a direct and often substantial impact upon the bottom-line profits of the store, and ultimately of the company. The complexity and multi-faceted nature of this position, the real estate knowledge involved in performing this function and the expertise necessary to perform it successfully requires a uniquely skilled individual. A full description of the Manager, Real Estate Asset Management position is outlined below and the educational and job experience parameters also below provide further enlightenment as to the skill and expertise required to perform this function.
The responsibility of overseeing all aspects of real estate asset management for the portfolio involves working closely with other internal departments as well as outside counsel in coordinating lease renewals, lease terminations, rent renegotiations, property acquisitions and divestitures and other issues related to the management of leased and subleased company and franchise real estate.
The Manager also supports the Director, Real Estate Asset Management in overseeing surplus property disposition, dealing with unsolicited offers to purchase property, right of first refusal offers, purchase options and other transactions involving the sale or acquisition of existing real estate assets.
Additionally, the Manager participates in portfolio report preparation for financial reporting, budgeting and forecasting, and other special projects.
II. ESSENTIAL FUNCTIONS
Evaluation of long-term potential of all restaurant properties based upon quality of real estate, market placement, sales performance and cash flow trends, adherence to operating margins, acceptability of rental rate and lease terms, and recommendation to the Real Estate Committee for option renewal, extension, remodel, rebuild, relocation or termination. Thereafter, the Manage, Real Estate Asset Management negotiates with the property owner and other parties to achieve the desired results, documents the transaction and oversees its completion.
Financial evaluation, lease review and performance analysis related to underperforming real estate assets and follow-through to store closure, building repair and maintenance, as required, and coordination with surplus property marketing to dispose of asset.
Management and direction of store closures due to terminating leases, property repairs due to lease requirements, and coordination of property turnover to landlord.
Management of all lease-related aspects of property remodels (including dual concept additions), rebuilds and property expansion acquisitions.
Financial analysis, site evaluation and recommendation to Director, Real Estate Asset Management on all purchase or lease buy-out offers made on open, operating stores, including negotiating and bringing approved transactions to completion.
Financial analysis, site evaluation and Real Estate Committee recommendation on all lease-related right of first refusal purchase and sale offers and all purchase options, including bringing approved transactions to completion.
Management of decision-making and information-gathering process to determine if stores damaged or destroyed due to natural causes will be rebuilt or the property abandoned, returned to the Landlord and/or marketed for disposition. The Manager becomes involved when damage to and/or destruction of a property occurs due to fire, flood, earthquake or other casualty, whether covered by insurance or not.
The Manager reviews and interprets the lease for rights and obligations, coordinates with the Risk Management Dept. on insurance coverage and with the Construction Dept. in assessing damage and evaluation of repair. The Manager ultimately delivers the circumstances and a recommendation to the Real Estate Committee. The Manager then communicates and/or negotiates with the landlord in accord with the Real Estate Committee decision, engages legal counsel as necessary and finalizes any required documentation.
Review, negotiation and revision of all documentation associated with each real estate transaction and preparation for corporate approval and execution.
III. LEVEL OF RESPONSIBILITY
1.Problem Solving/Decision Making
The Manager, Real Estate Asset Management's job function involves critical problem solving, analytical perspective, strategic decision making, strong negotiating and leadership. The Manager spends a significant amount of time negotiating the financial, business and legal terms of leases and shopping center covenants with landlords, property managers and developers. The results of these negotiations, either directly or indirectly, have long-term financial impact upon the bottom-line profits of the stores and of the company. Negotiating skills, real estate expertise, spontaneous creative thinking and knowledge of the particular real estate asset all play a part in the success in sometimes tense and combative negotiating sessions.
2.Freedom to Act
The Manager, Real Estate Asset Management position requires minimal supervision. Strong leadership skills in terms of negotiation, persistence and follow-through are absolutely fundamental to this position. Self-motivation, determination and a strong work ethic are essential qualities as well.
3.Scope of Responsibility
The Manager, Real Estate Asset Management is responsible for the management of all real estate assets, including fee and leased properties, associated with a particular concept or concepts, typically 1,000 to 1,200 properties. The availability, longevity and quality of our real estate is foundational to our ability to operate our restaurants. Furthermore, the economic components of a lease bear upon the restaurant's profitability and can sometimes determine the difference between a profitable versus an unprofitable restaurant operation, if all other conditions are equal. The Manager's scope of responsibility directly impacts the longevity of our leases and economics of the lease transaction.
To further accentuate the comments above, the Manager's role has a substantial impact upon the company's ability not only to operate its restaurants, but to operate them profitably. Failure to exercise an option could result in the loss of a valuable real estate asset as well as a highly profitable restaurant. Failure to renegotiate an option rent escalating to
above market levels will have immediate and potentially long-term effects upon a store's cash flow.
The Manager, Real Estate Asset Management has regular and direct contact with landlords, shopping center management companies, developers and attorneys representing these parties. The nature of this communication can be anywhere from informational to confrontational and hostile. Throughout all encounters, the objective is to professionally, effectively and productively represent the best interests of the company.
A four-year college degree is the required minimum, as well as extended education in real estate, real estate finance, business and real estate law, or equivalent experience.
Excellent verbal and written communication skills are essential. Day-to-day experience with Word for Windows and Excel are mandatory. A solid understanding of Discounted Cash Flow (DCF) and Return on/of Investment (ROI) analysis is critical.
A minimum of ten years experience in lease analysis and commercial real estate transactional negotiation and management is required to perform the elevated functions of this position. Exposure to Accounting rules and principals is also desirable.
The ability to work independently but also participate as a team is key to working successfully within the environment of the department. Effective use of time is critical. Presenting a professional image and demeanor to fellow workers as well as associates and superiors both within and outside the company is appropriate for this position.