Steven P. Rosenthal and Northland Investment Corporation utilize a large number of sources to find real estate deals. They do not hesitate to seek out brokers, title companies, local contacts and its in-house managers to find the best transactions. Rosenthal, Northland’s President and CEO, explains:
“We’re going to be very aggressive when there’s an appropriate opportunity” Rosenthal says. “There may be all kinds of opportunities, not just buying notes. For instance, some of the smaller REITs have to sell property. Maybe there’s an opportunity to take a small REIT private.”
Northland does not just jump into a purchase without a thorough understanding of the entire picture. Not only is the acquisitions department involved in the legwork before purchases, but the management team plays a crucial role also, doing market surveys and lease audits.
“We literally do up to a one-year budget from the property management folks, and we match it [with the budget from acquisitions] and see how far apart they are” says William M. Thompson, vice president of asset management for Northland. “Typically, property management is more conservative, and acquisition folks are more optimistic. It’s a good balance for what the pro formas are in the broker packages.”
Northland is also attracted to many of the country’s high-tech hubs for growth potential. Rosenthal explains:
“With places like Austin, Charlotte, or Raleigh, you see a real concentration of brain power” says Marblehead MA-based Rosenthal. “You have a lot of smart people living in the same place. That will drive the economy.”