Global and domestic economic issues, compounded by the world financial crisis and the major adjustments of the last twelve months have revealed many problems for commercial real estate owners and operators. The commercial real estate marketplace experienced dramatic changes in late 2008 and 2009 with significant pressure on rental rates and a dramatic decline in property values.
 
The changes are being felt all over the nation and to the far reaches of the globe.  Real estate owners are coming back to focus on fundamentals, excellent locations, superior access and plentiful amenities are more important now than ever. Additionally, those owners who have done a good job of caring for their tenants and maintaining high levels of service at their properties are not under the same kind of pressure as more marginal operators. A dramatic performance gap is opening up between well managed, quality properties and those in the ‘also ran’ category.  Tenants are migrating toward well financed owners with a track record of excellent service delivery and the disparity in occupancies and cash flow is growing more significant every day. Markets continue to reward the most effective owners and operators while punishing the laggards. As this process continues, additional distress will be revealed.  The opportunities for Real Estate Value Advisors and our sister companies are more exciting and values more compelling than we have seen in many years.
 
Fortunately, Real Estate Value Advisors never lost our sharp focus on solid fundamentals and excellent service.  With our ‘Systematically Proactive™’ approach and entrepreneurial vigor, we have continued to outperform projections and deliver superior returns to our office investors. Sticking to the basics, delivering responsive service and a hands on, cost effective management style remains a hallmark of the REVA way and an important part of shielding our investors from the worst of the market’s volatility.  Our office properties are solid, continue to perform very well delivering great cash flow returns and –thankfully- there are no maturing loans in our portfolio for many years to come.
 
As part the effort to address this changed market the REVA Catalyst Fund, LLC, was formed to recapitalize challenged properties and leverage our expertise and infrastructure. The Catalyst Fund, with its unique capital structure and focus on re-capitalization of challenged TIC properties, is positioned to generate significant investment activity and fee income. REVA will continue to leverage its principals’ long-standing relationships and contacts with large institutional real estate owners (insurance companies, pension funds, banks, etc.) and regional property owners to secure access to investment properties on a favorable basis.
 
REVA has sharpened the focus on fee based services, third party asset management  and consulting revenue. REVA recognizes that, with the serious constraints in the capital markets, traditional syndications and acquisitions are increasingly difficult to accomplish.  We addressed these challenges in the market head on in 2009 and set about adding different revenue streams and increasing our emphasis on service and consulting revenue, which today leaves us well positioned with a profitable and stable business model capable of enduring for the long haul.