Northam Supplement

Special Supplement to Canadian Property Management

PROUDLY PRODUCED BY

TENANT MANAGEMENT PAGE 6 SUPPLIER NETWORK PAGE BUILDING THE TEAM PAGE 14 THE ART OF THE DEAL PAGE 16

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AWARDS AND ASSOCIATIONS PAGE 12 INVESTIGATING WITH CONFIDENCE PAGE 18

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NORTHAM REALTY ADVISORS LIMITED

Northam Realty Advisors Limited After 35 years in business, it’s safe to say Northam Realty Advisors Limited has found its sweet spot. Managing 6.9 million square feet of commercial space across Canada, and home to over 80 real estate professionals, it’s large enough to enjoy an international reputation yet small enough to deliver personal service in a transactional industry.

“Our funds are institutional, but we operate entrepreneurially,” says Craig Walters, Executive Vice President and COO. “For us, real estate is an art, not a science.

Every situation is different. Every lease is unique. We believe you have to be nimble, flexible, and able to move fluidly within your company to bring everyone together.

Our size lets us operate that way, and our customers find that refreshing.”

As a full-service real estate investment firm, Northam focuses its attention and care equally between two very different customers. These include the tenants who make Northam’s buildings tick and expect a consistently high level of service and the world-class investors who entrust Northam with the funds to fuel its growth.

“While catering to our portfolio’s tenants is always top of mind for our company’s real estate professionals, we are also in the business of making money for our investors.

That’s the delicate balance we strive to achieve every day,” insists Walters. “Our investors trust us with significant amounts of capital, and that’s because we’ve built a solid track record and have been incredibly

successful in providing above-average returns over the years.”

Founded in Toronto in 1971, Northam has grown at a steady pace. In the mid-1980s, it assumed its current ownership structure and took the first steps towards expanding the breadth and scope of its services. In 1995, it raised funds for its first private equity fund, consisting of a single asset at 110 Bloor Street. The creation of other funds soon followed, designed primarily for high-net-worth individuals who sought Northam’s services in providing higherthan-average returns.

In 2001, the company undertook a new venture which refocused the team’s expertise for the years that followed. It was then that Northam’s reputation caught the attention of MPC Münchmeyer Petersen & Co. GmbH, a German company who approached it with an interest in investing heavily in Canadian markets.

“Thanks to the reputation we had built up until that point, MPC sought us out to buy and manage real estate across Canada on their behalf, which took up a majority of our resources until 2005,” recalls Walters.

“Ultimately, we bought $1.2 billion worth of real estate for them, and that kicked off a period of substantial growth.” In 2004, Union Investment, Germany’s largest Real Estate Open Fund secured Northam as its exclusive Canadian representative and purchased properties for them as well.

Northam continues to represent Union for all of their Canadian property requirements.

Northam inked another chapter in its history books in 2008 when it founded its Northam Property Funds Management S.á r l. operation based in Luxembourg. It was launched to create a platform to market, manage, and service the company’s own product lines to European institutional investors seeking access to Canada’s commercial real estate marketplace.

By pursuing this route, Northam risked significant upfront costs to obtain the proper structure and licensing that would permit primarily German institutions to invest in Northam’s (then) new line of real estate funds which focused solely on Canadian real estate assets. And while most of the institutional growth that Northam experienced through Special Supplement to Canadian Property Magazine

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NORTHAM REALTY ADVISORS LIMITED

the early 2000s was owed to its asset manager relationship with clients, this new structure positioned Northam as a general partner, placing it firmly in charge of all decision making. As such, it was provided the means and ability to act faster in all issues related to asset management and acquisitions.

Buoyed by its success, Northam earned its licensing in the middle of 2008, just in time for the credit crisis. Looking back, Walters reflects: “Our timing was not perfect, and we wondered if we had made the wrong decision. However, with time and persistence our hard work paid off. By the middle of 2009, we started to get some traction, and by early 2010 we had our first investors and were starting to purchase properties for our first Northam Fund.”

Northam’s first $400 million equity fund is fully invested and the final investors are in the process of being put into place to complete its second and larger fund.

THE FULL-SERVICE PHILOSOPHY

Yonge Madison Centre (Top), 260 King Street (Bottom)

4

Over the years, Northam has become a fully integrated real estate asset and property management firm. Its momentum is owed to its focus on providing clients with a full suite of comprehensive services, and an industry-savvy staff which represents centuries of combined industry experience. Working from its Carlton Street headquarters and satellite offices across Toronto, it’s these professionals who keep Northam’s asset management, property management, development and redevelopment, leasing services, and construction services departments running at peak productivity.

Yet while each department is equipped with the talent and resources to see the job done, the company thrives on its ability to work as one, cohesive team.

“We’re not silo’d or compartmentalized here. There’s a lot of crossover and, as a result, we’ve been able to create this very open and empowering environment for our staff, which I think is pretty unique,” explains Walters, adding, “Our people are empowered to make their own decisions including being involved in the asset management decisions which are often contained in a different department at other companies.

“Many of our senior people have worked at larger real estate companies in our industry throughout their careers, but after experiencing these types of organizations

Northam Realty Advisors Limited

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NORTHAM REALTY ADVISORS LIMITED

have decided that they enjoy the less formalized organizational structure of our company. We’re not a tiny company and we’re not a huge company. We’re a midsized real estate company, and it really works for us in attracting, supporting, and retaining good people.”

INGREDIENTS OF SUCCESS A reputation like Northam’s doesn’t develop overnight. Indeed, it’s the long-running dedication of its management and staff that has sharpened its competitive edge.

“We work hard to find the best staff,” says Richard Moore, Vice President of Property Management. “Because we’ve been in the business so long, we know who’s out there, we know the market, and we can work those options.”

Curating the most effective team is a top focus for Northam, who’s management invests heavily in the development of its talent from the moment they walk into the door. It does so through mentoring programs, paid training, educational initiatives, and a proven track record of promoting from within.

The strength of Northam’s staff is also a result of its career-focused training, which encourages participation and exposure to all aspects of the business.

“To be great in this industry, you have to work in it. You have to acquire those experiences, deal with those situations, and build upon those skills. There’s really no clearcut training or starting point for this industry, so we take it on ourselves to be that mentor and grow our talent,” says Moore.

It’s thanks to this approach that staff feel encouraged to move freely between Northam’s departments, sharing their expertise and insights to any and all they can benefit.

“Everyone knows everyone here,” notes Walters. “Our senior people know everyone in the company and at our buildings, and that allows us to have a different, more personal type of relationship with the people. With larger real estate companies, it’s just not practical to know everyone, but we’re able to do that and I think people really appreciate and enjoy that kind of environment we have, both for our staff and for all of our clients.”

Without question, it’s the managers, accountants, operators, administrators, and everyone at Northam who form the lifeblood of the company. Together, they work day and night to manage all stages of

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a property’s lifespan, and tackle the many challenges that can arise therein.

“We don’t live in the black and white; we tend to live in the grey,” suggests Moore. “We’re always analyzing, we’re always talking, and we’re always working together to come up with new ideas to resolve issues quickly. Everyone here gets that this is an industry where no two resolutions are ever the same, and we just have to keep working to see what fits best and just keep moving.”

Still, it’s about more than finding the right solutions. It’s about finding the right leaders, the right investments, and right partners. It’s also doing whatever it takes to keep tenants happy and making sure Northam never loses its personal touch.

“With any of our major tenants, we will pretty well know the right person there to talk to, and they’ll know us by name.

That kind of relationship helps, because sometimes there are issues that need that senior staff connection, whereas for the day-to-day issues, we have our property managers and staff who also know everyone they work with on a close, professional level,” says Moore.

Managing issues and finding solutions is where Northam excels. “Its commitment to doing so is on full display within its construction department where David Brown and his team provide tenants with

the means to overcome the physical limitations of their spaces.

All combined, it’s this “all-in” Northam touch that lays the foundation for successful tenant retention. And whether its holding regular industry events, communicating via e-blasts, or adding countless client resources to its NorthamOne website, Northam is continually seeking new ways to keep its properties populated for the benefit of all its stakeholders.

FORWARD MOMENTUM With over $1.75 billion in assets under management in Canada, Northam is no small player. Still, Walters maintains it’s the company’s goal to stay large enough to meet its clients needs, but never too large to lose what makes it work.

“There are larger companies who are really good at what they do, and they might have a different type of investor base with a very specific type of checklist for doing things, but that’s not who we are and that’s not who we want to be,” he offers, adding, “Performing over and above expectations – that’s what our business is about. And if we weren’t able to find the right people, or deliver on the leasing, managing, and tenant retention pieces, we wouldn’t be where we are today.”

55 Commerce Valley Drive

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NORTHAM REALTY ADVISORS LIMITED

Setting the Bar for Tenant Management R ates. Returns. Market ebbs and flows. In the world of real estate management it’s easy to get caught up in the numbers. At the end of the day, however, it’s a company’s ability to attract and retain tenants that determines the longevity of its portfolio and, by extension, the strength of its investments.

“A lot of people say this is a people business, and that’s because it is,” says Craig Walters, Northam’s Executive Vice President and COO. “In real estate, you’re dealing with all types of people in all types of circumstances, and you have to be able to provide a full-service approach to make sure everyone is happy.”

With a vacancy rate of less than 3% throughout its entire portfolio, Northam knows a thing or two about tenant management. It’s an expertise that comes from decades of experience and a proven skill for adapting to client needs.

“Tenant retention is a huge issue we face, if not the largest one,” stresses Walters. “Our buildings are virtually all leased right now, but you have to constantly be accommodating to tenants needs and growth, because if you can’t, that’s when you have an issue.”

Businesses evolve. Companies change.

As such, tenant growth is a common cause of tenant migration, and it’s incumbent upon Northam to provide solutions that work.

“You can have situations where a building will be full and a tenant will come up to you and say their business is doing great, but they need to double in size. What if you don’t have a space for them? What do you do?” poses Walters. “For us, we try to get creative. We try to look forward.

We’ll approach other tenants who maybe don’t need as much space or we’ll look for co-leasing options. Whatever it takes, we’ll coordinate all these different things.”

Surely, he adds, effective tenant retention relies on personal service, fast results, and a willingness to think outside the box. “At the end of the day, tenants want to know that the professionals looking after their properties can provide a quick, hands-on response from people who care.”

ALWAYS CONNECTED It’s often said, but it is worth repeating: Communication is everything. Taking this to heart, Northam employs a number of communication strategies to keep its clients informed and invested in their properties of choice.

Among these is the company’s NorthamOne online call centre, an internally-designed website created to give tenants a direct line to owners, service providers, and Northam representatives who can handle any issue, at any time.

“The concept behind NorthamOne is that any tenant can log in and connect with an operator who will confirm they’ve received their request and are addressing it right away,” explains Richard Moore, Vice President of Property Management.

“Whether or not you’ve got a burnt out light, hot or cold temperature issues, or there’s something in your space you’d like addressed, this is a way to have your request acknowledged in real time and stay updated on all the steps that are being taken to address it.”

The NorthamOne call centre is managed

by Northam’s head office and backed by management staff who oversee the

Tenant Appreciation Day at 260 King Street.

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SETTING THE BAR FOR TENANT MANAGEMENT

process to ensure issues are being dealt with directly and in a timely manner.

It is also complimented by other communication tools, including Northam’s recently renovated website (www.northamrealty.com).

“With any tenant, there are always different levels of communication going on with them at any given time,” notes Moore.

That said, while there’s value to be had in communicating en masse, the team believes in the benefits of face-to-face contact – especially as it applies to tenant relations.

“We had a circumstance where we bought a building and there was a fairly good-sized tenant in that building who, as word on the street had it, was going to leave,” recalls Walters. “We knew this was a possibility when we bought the building, so immediately after we closed I went to meet the tenant to see what we could do at our end to keep them. At the end of the day, it turned out all he wanted was just some form of contact with a senior-level representative from his property management company to show appreciation for their business. By providing that, and by adding that personal touch, we were able to keep them.”

“That’s the kind of thing we do on a daily basis, and since we have some pretty significant tenants in our portfolio that we can’t afford to lose, it’s a very important job.”

ENCOURAGING COMMUNITY Strong communication builds durable communities. And in property management, the degree to which a tenant feels connected to their office, their building, and overall environment can be the deciding factor in their decision to stay.

For Northam, crafting that sense of community is a goal it strives for across its entire portfolio. For some tenants, it’s achieved through facility upgrades, adding new amenities, or working with owners to create a more inviting place to work. For others, it comes down to engaging tenants in civic-minded activities, such as waste-reduction programs, recycling promotions, and Earth Day celebrations.

“Being eco-friendly and working towards energy conservation is a huge goal for everyone, so part of building our communities is addressing that and getting our tenants involved in green programs and goals,” explains Moore.

Moreover, Northam’s calendar is filled with community-building events. From on-site luncheons to summertime ice cream parties, and holiday celebrations, its staff is always seeking new ways to create welcoming, productive, and engaging property environments.

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SHAPING SPACES As tenants evolve, so do their spatial requirements. In response, Northam’s construction division is available to provide clients with a full-service department whose team can assess, price, and carry out renovations in partnership with third-party contractors.

“We use our construction group not only a profit centre but as a deal facilitator,” explains Walters. “It helps us get the deals done

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continued on page 10 Special Supplement to Canadian Property Magazine

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NORTHAM REALTY ADVISORS LIMITED

Valued Sup

Northam Realty A PLATINUM PARTNER

DTZ is a global leader in property services, providing occupiers and investors around the world with industry leading, endto-end property solutions. As a leader in comprehensive facility services throughout North America, DTZ builds enduring partnerships, based on mutual respect and a shared understanding of each client’s diverse needs. We are transforming the world of property services. For more information, visit www.dtz.com.

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Northam Realty Advisors Limited

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OUR VALUED SUPPLIERS

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Applied Systems Technologies Inc. 910 Rowntree Dairy Road, Unit 5 Woodbridge, ON L4L 5W4 Tel: 905-850-7080 Fax: 905-850-7121 Toll Free: 1-866-572-2784 Rico Taraschi , Vice President Rico@appliedsystemstechnologies.com www.appliedsystemstechnologies.com

Bee-Clean Building Maintenance 2 Thorncliffe Park Drive, Unit 22 Toronto, ON M4H 1H2 Jorge Silva, National Director, Business Development jsilva@bee-clean.com Phone: 416-677-3328

Cannon Services 145 Shields Court, Markham, ON L3R 9T5 Peter Farrell, President pfarrell@cannonservices.ca Phone: 800-643-6922 www.cannonservices.ca

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Raylan Electrical Systems Inc. 483 Bay Street, B1 Level South, Toronto, ON Tel: 416-598-8892 Fax: 416-977-0185 info@raylan.com www.raylan.com

Vipond Inc. 6380 Vipond Drive, Mississauga, ON L5T 1A1 Sanj Patel, Senior Business Development Tel: 905-564-7060 ext. 326 Cell: 416-230-9155 sanj.patel@vipond.ca www.vipond.ca Special Supplement to Canadian Property Magazine

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SETTING THE BAR FOR TENANT MANAGEMENT

Celebrating tenants at Canada Square

continued from page 7

because a lot of time tenants will want a new space, but they’ll say it doesn’t work for them the way it is and they’ll choose to walk out.

“With our construction department, we can instead offer them a chance to sit down, bring in a space planner, go through with those renovations, and make those changes. The best thing is we do all the work, and because we have direct control, we are able to turn renovations around quickly and meet very tight time lines to secure a deal” Indeed, acting as a construction manager, Northam’s construction team manages all facets of a tenant’s renovations, from hiring the right sub-contractors to negotiating the best prices, organizing schedules, and spearheading construction.

“We’ll coordinate everything from installing a door to building out an entire office,” says Moore. “We can do it all from top to bottom, and that’s because we have a deeply talented, high quality construction department who will work with clients right through the entire process.”

EFFECTIVE MEDIATION Managing conflict is essential to tenant retention. After all, 99% of things can go right, but it only takes that 1% to turn a loyal client into a disgruntled customer.

Being able to handle issues quickly and effectively is therefore a skill all of Northam’s staff must be ready to apply.

“You have to be a good conflict manager in this business, and that takes skill 10

because while a lot of that relies on using common sense, not everyone has that common sense when it comes to dealing with people,” says Walters. “It’s just about understanding that the customer is always right, and treating it that way even when you know they aren’t.

“Overall, we have to always remember that for a lot of the people;, they spend a great deal of time at the office, so it really does become a home away from home. You have to recognize that when you’re managing conflict, and above all understand that it’s all just business and no one should take conflicts personally.”

True to the company’s style, conflict resolution is something Northam often approaches as a team. That is, while property managers are encouraged to do what they can on their own, help is always at the ready for when and if a situation requires support.

“If we’re dealing with an issue that has the possibility of affecting client retention, we’ll pull in who we need to from around the office to get a better sense of that issue and everything involved. That means we’ll have accounting, management, leasing, and someone from senior management sitting at the table trying to deal with a situation using everyone’s input and background,” says Moore.

AN ONGOING CHALLENGE The reality of tenant retention is that it’s never 100% possible. Factors like a company’s size and bottom line can

outweigh all others in a tenant’s decision to relocate. And in some instances, these factors can be beyond a property manager’s control.

“Many of our larger tenants right now will have a lot of choices in the marketplace when their leases come up, so it’s becoming very competitive to keep them. We’re doing all the right things to retain them, but at the end of the day some will make a decision to move based on financial decisions or the desire to be in a new building or location.

Ultimately, those are things we can’t affect,” offers Walters.

In other cases, tenants may simply choose to move to something bigger because they cannot afford to weather the downtime of renovations, or perhaps the age and infrastructure of the building no longer supports their needs.

Once again, reminds Walters, it’s all just part of the business. “There will always be tenants who leave because they need to move, not because you did a bad job. Of course, you have to always be doing the best you can from the management side to take care of your tenants and buildings, so when it comes time for tenants to make that decision, hopefully the product you have is still something that resonates with them and they’ll want to continue to occupy.”

Tenant retention is a never-ending task affected by new trends, competition, and unforeseen circumstances. Nevertheless, Northam is always up for the challenge and finding fresh, meaningful, and innovative ways to keep tenants happy in their home away from home.

Northam Realty Advisors Limited

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NORTHAM’S SUPPLIER NETWORK

Northam’s Supplier Network A strong team demands solid partners. That’s why Northam takes pride in cultivating a network of property management suppliers who know their way around the industry and are dedicated to upholding the company’s values.

“We’re only as good as our weakest service provider,” says Craig Walters, Northam’s Executive Vice President and COO. “As a property management company, our role isn’t to do everything ourselves. It’s to aggregate and coordinate the best thirdparty services for our properties. It’s to make sure we’re working with companies that are going to perform, and if they aren’t performing, that they’re finding solutions and making it right.”

As with any aspect of property management, there are no cookie-cutter strategies to choosing the right supplier.

As such, Northam entrusts its property managers to select third-party service providers that match the specific needs and conditions of their individual assets.

“We’re looking for companies that are going to meet our requirements, meet our specifications, and satisfy the conditions set by our property managers on a day-today basis,” says Richard Moore, Northam’s Vice President of Property Management.

“We will help them understand their choices and handle the tendering of it from our head office, but otherwise we trust our property managers to make those decisions and work with those suppliers to get the job done.”

There are times, however, when it pays to think big. Whether it’s contracting one security company to install similar systems for multiple assets, or employing a single paper supplier to outfit cleaning staff over

an entire portfolio, Northam’s size and reputation gives it the muscle and flexibility to negotiate on a large scale.

“If it makes sense for us to have the same company looking after a large number of assets, we’ll do it,” agrees Moore. “We’ll do that because we can control it better, negotiate bulk pricing, and get better service in the long haul because those companies respect the fact they’re not just dealing with one property, but an entire portfolio.”

No matter their size or experience, Northam holds each of its suppliers to a high standard of excellence and an expectation they will finish the job, no matter the obstacle.

“Like our team, we don’t hire companies that deal in black and white; we prefer to work with suppliers who deal in the grey,” offers Moore. “They have to be the type of company that’s geared to finding solutions, and not the type who will just throw their hands in the air and say, ‘It’s not going to work,’ or ‘the client just doesn’t understand.’

“We’re always looking for solutions, and the quicker we can reach them with our contractors, the better it is for everybody,” he insists.

Aligning with third party service providers who can offer solutions is no doubt critical.

After all, reminds Walters, Northam is the first call tenants make when issues arise, so it is important that its partners are

ready and willing to jump in and provide answers for any situation. “When an elevator breaks down, or someone on the cleaning staff doesn’t do their job, we’re the ones getting that call. It’s not a good answer to just say, ‘The company we hired is no good.’ That doesn’t work. We need to solve that problem and we need to know that, if needed, we can bring that particular service provider into a meeting to explain what’s going on, because they’re the experts, not us.”

Naturally, when building a network of suppliers, it helps to know your options.

And with decades of experience with contractors in the Toronto market, Northam is well connected.

“With virtually all of our contractors, we know who the owner is, we know their reputation, and we know we can phone up George, Manny, or whoever’s in charge and they’ll take accountability to resolve the issue,” says Moore. “We’ve all been in the industry for many years, so we know what contractors are out there, what they’re strengths are, and where they fit best.”

The right people for the right job. It’s the philosophy Northam applies to its staffing and it’s a mantra that’s helped it foster an inner circle of trusted industry suppliers.

Notes Moore: “We’re not with them all the time, so we have to trust that our partners are doing the best job possible.

And the more we can rely on someone to do their job, the better it is for everyone.”

Special Supplement to Canadian Property Magazine

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NORTHAM REALTY ADVISORS LIMITED

Awards and Associa Northam Realty Advisors Limited is proud to have accrued numerous industry nods for its efforts in environmental, property management, and sustainability stewardship. These include: BOMA TORONTO MANAGEMENT AND EXCELLENCE AWARD Awarded in recognition of buildings and their property management teams who have demonstrated excellence in their field.

BOMA TORONTO BUILDING OF THE YEAR Awarded to buildings that best demonstrate property manager excellence, sustainability, and innovation.

483 Bay Street

500,000 sq. ft. to 1,000,000 sq. ft. (2011)

483 Bay Street

260 King Street

150 Bloor

2425 Matheson Blvd

2 Carlton Street

49 Ontario Street

55 Commerce Valley Drive

2180 Yonge Street

105 Commerce Valley Drive

2190 Yonge Street

BOMA CANADA TOBY BUILDING OF THE YEAR

125 Commerce Valley Drive

2200 Yonge Street

150 Commerce Valley Drive

235 Yorkland Blvd

“The Outstanding Building of the Year “(TOBY) award, which encompasses all of Canada, is awarded by BOMA in recognition of excellence in all aspects of a building’s operations.

165 Commerce Valley Drive

245 Yorkland Blvd

483 Bay Street

(2014, 2010)

500,000 sq. ft. to 1,000,000 sq. ft. (2011)

40 Eglinton Avenue East

155 University Avenue

2180 Yonge Street

(2011)

(2007)

(2011, 2008)

(2014, 2008)

(2013, 2009) (2006)

(2014, 2010)

(2012, 2007)

(2009, 2006)

(2012, 2009, 2006) (2006) (2007)

55 Commerce Valley Drive

Over 100,000 sq. ft. to 249,999 sq. ft. (2007)

165 Commerce Valley Drive Under 100,000 sq. ft. (2006)

2180 Yonge Street

250,000 sq. ft. to 499,999 sq. ft. (2011)

(2011, 2008)

(2013, 2010, 2007) (2012)

(2013, 2009)

(2007)

250,000 sq. ft. to 499,999 sq. ft. (2011)

4 King Street (2006)

An Ontario First In 2009, Northam’s 483 Bay Street became the first property in Ontario to achieve LEED EB Gold Certification, which again in 2014. 150 Commerce Valley Drive was also awarded LEED EB Gold status in 2013.

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Northam’s RCO Waste Minimization Award

Northam Realty Advisors Limited

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AWARDS AND ASSOCIATIONS

ciations

Northam’s RCO Waste Minimization Award

BOMA BESt CERTIFICATION Launched by BOMA Canada in 2005, the BOMA BESt (Building Environment Standards) certification identifies properties that uphold the highest industry standards and practices.

639 5th Avenue, Calgary

260 King Street

483 Bay Street

49 Ontario Street

2 Carlton Street

2180 Yonge Street

55 Commerce Valley Drive

2190 Yonge Street

105 Commerce Valley

2200 Yonge Street

150 Commerce Valley Drive

235 Yorkland Blvd

165 Commerce Valley Drive

245 Yorkland Blvd

Level 3 (2014)

Level 4 (2014, 2011, 2006) (2008)

Level 2 (2014, 2008)

Level 2 (2013, 2010, 2008) Level 3 (2014, 2010) Level 2 (2010)

Level 2 (2012)

Industry Partners Northam enjoys a strong relationship with numerous real estate management partners. These include its work with BOMA, the Canada Green Building Council, and PMI.

(2008)

Level 2 (2014, 2010, 2008) Level 2 (2014); Level 3 (2010) Level 2 (2014); Level 3 (2010) Level 2 (2013) Level 2 (2013)

GREENING GREATER TORONTO’S RACE TO REDUCE Awarded by Greening Greater Toronto for reducing the total energy use in an office building by at least 10 per cent over four years.

483 Bay Street

Lowest Energy Use Award in Canada over 1,000,000 sf – First Place (2013, 2011)

150 Commerce Valley Drive Gold (2012)

THE EARTH AWARD (ENVIRONMENTAL BUILDING OF THE YEAR IN ONTARIO) Awarded by BOMA Toronto in recognition of excellence in resource preservation and environmentally sound commercial building management.

483 Bay Street (2011)

RCO WASTE MINIMIZATION AWARD Awarded by the Recycle Council of Ontario, this award recognizes excellence in waste reduction and elimination.

483 Bay Street:

Gold (2014, 2008), Silver (2013, 2012)

Canada Square – Events Category: Gold (2013)

Canada Square:

Platinum (2013), Gold (2012, 2011)

483 Bay Street Special Supplement to Canadian Property Magazine

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NORTHAM REALTY ADVISORS LIMITED

Building the Northam Team The secret of Northam’s success is really no secret at all. Ask any of its 80-plus professionals what gives the company its competitive edge and they’ll point to their colleagues who represent Northam at its Carlton Street headquarters, satellite offices, and properties throughout the Greater Toronto Area.

Northam staff enjoy a box seat view of the Toronto Blue Jays

“What truly sets us apart is our staffing,” agrees Richard Moore, Northam’s Vice President of Property Management. “We work hard to find and retain the best people in our industry, we entrust them to make their own decisions, and we encourage them to work collaboratively with our entire team on any issues or concerns.”

It’s this support and empowerment that keeps Northam’s staff at the top of their game; and it begins at recruitment. From day one, Northam’s recruits are exposed to all aspects of the trade, whether they’re 14

working alongside operations staff, managing accounts at the office, or getting their feet wet in one of the company’s daily client interactions.

Says Moore, this “all-in” approach to employee development provides Northam’s staff with a broad understanding of the company’s values and an appreciation for the industry in whole. “There’s really no better training ground for property management than simply doing it.

“For example, we have one general manager who’s been here for almost a

decade. We started him as an operator for six months, so he could understand the building from front to back and develop a respect for our operations staff and what they do. Then, we moved him into an administrative position, put him on a major project, and had him deeply involved in rolling out our National Preventative Maintenance Program. From there, he became an assistant property manager, and now we’re proud to have him in a general manager position.”

Mentorship and monitoring are essential to Northam’s strategy. Staff are regularly evaluated to make sure they are being engaged, challenged, and supported with opportunities to advance within the company if and when they are prepared to make the leap.

“It’s our responsibility to create opportunities for our people to excel within our walls,” says Moore. “We’re constantly asking ourselves, ‘Are we doing enough to give them enough?’, because we want to make sure the people we want are the people who want to stick around.”

Developing from within is common practice at Northam. Property managers are constantly exposed to various properties in the company’s bid to prepare them for advancement and ensure each

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BUILDING THE NORTHAM TEAM

“

It’s our responsibility to create opportunities for our people to excel within our walls. We’re constantly asking ourselves, ‘Are we doing enough to give them enough?’, because we want to make sure the people we want are the people who want to stick around.

- Richard Moore, Vice President of Property Management

asset has a back-up professional in place who can jump in at a moment’s notice.

Training and mentorship programs are also offered throughout the company to ready each member of the Northam team for whatever comes their way.

“We’re all close here, so we can see how people are developing and we can get a true sense of how they can handle situations, deal with a crisis, and work with clients,” notes Moore.

Still, while on-the-job success weighs heavily in all of Northam’s promotions,

Moore suggests it’s one’s overall attitude that can truly make the difference. “Hiring and promoting people is largely based on personality for us. They have to be eager, ready to learn, and want to be a part of our family. We’re more than happy to train them, provided they come to us with a great positive personality and the right attitude first.”

Paid training, mentorship, and intercompany promotions notwithstanding, Northam is no stranger to rewarding staff with everything from box seats at Toronto

”

Blue Jays baseball games, office lunches, bowling nights, and gala seasonal events.

In return, says Moore, Northam expects nothing but the best. “We have a high expectation from our staff. Everything they do just has to be right.”

All told, Northam has established an office culture that values self-improvement, accountability, teamwork, and loyalty. Adds Moore: “We treat our employees like we treat our clients: with respect, honesty, and integrity. We’re a family here, and because of that we enjoy very little turnover.”

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Special Supplement to Canadian Property Magazine

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NORTHAM REALTY ADVISORS LIMITED

The Art of the Deal Providing fast, personal service for a transactional industry. This is what Northam Realty does best. And for its tenant clientele, that hands-on advantage begins with the first call to its leasing department where Judy Lucas, Vice President of Leasing, and her team endeavour to deliver a quick, comprehensive, and hassle-free experience.

“One of the things that gives us the advantage is we’re very fluid,” informs Lucas. “We’re set up so we don’t have to push through a lot of internal layers for approvals, and that helps us turn paper quickly without getting bogged down.”

This hands-on approach guarantees each client is treated to the full-service care that defines the Northam brand. What’s more, it’s a process that respects the urgency and uniqueness of its buyers from the moment they make contact to after the final papers are signed.

“Our goal is to make the process for the tenant as pain-free as possible and support them well beyond the final deal,” says Lucas.

MAKING THE MATCH From Alberta to Ontario, Northam’s leasing team matches tenants of all types and sizes to the spaces that fit their individual needs. It does so by collaborating with reps from each of Northam’s departments who equip Lucas and her staff with the research, perspectives, and “boots-on-the-ground” insights to make informed decisions.

“When we’re looking at our options, we’ll get senior people, staff from the acquisition team, the property managers, and even someone from the finance group to meet with us and give their input on deal objectives and/or any potential conflicts or issues. At that point in time, any concerns or discussions that need to 16

Northam Realty Advisors Limited

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come up surrounding a specific deal or a building will be discussed and we’ll all know what we need to do,” states Lucas, adding, “There’s a real cohesiveness to our team that allows us to act quickly and involve everyone.”

Finding the right fit for tenants also means identifying the right neighbours. Here again, Northam’s leasing department works with its colleagues and industry contacts to address possible tenant conflicts.

“If we know we have an offer on a space that’s going to be highly densified, and it’s going to disrupt the building and everyone who’s already there, if we can, we’ll take

“

the time to deal with all those problems that could arise,” says Lucas. “We don’t just place a tenant and scramble to resolve their issues afterwards. We do our research and address things beforehand to the best of our ability.”

Indeed, she adds, Northam’s leasing strategy pivots on its ability to look beyond the numbers and connect tenants to the spaces and environments that suit their exact requirements. “From the moment we get that first call, we’re researching the company, identifying their needs, and working with everyone in our office to figure out what works and what doesn’t.”

“As a tenant advisor, I am very comfortable introducing my clients to any property owned or managed by Northam Realty Advisors because of their client-centric approach. Northam understands they are in the business of servicing tenant needs.

Therefore, I am assured that my clients best interests will be paramount in any circumstances with this landlord.”

-Howard Bogler, Senior Vice President / Broker, JLL

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THE ART OF THE DEAL

“

It is a pleasure to work with the real estate professionals at Northam who know their business well, and who are committed to working collaboratively with their leasing brokers, design, and construction partners. Northam is extremely responsive on all issues, solicits inputs from their consultants, and makes quick and informed decisions to move deals forward. Our partnership has grown to the point that our team feels like additional staff members to Northam and have grown into a strong friendship and alliance.

- Nairn Rodger, Senior Associate, Avison Young

A COLLABORATIVE APPROACH At Northam Realty, there are no barriers.

Every department relies on the next for upto-date information and expertise to reach the best possible outcomes. For Lucas and her staff, that involves regular meetings with other departments to learn the insand-outs of Northam’s current portfolio, and weekly rundowns with the leasing team to gain the latest intel.

Thanks to this due diligence, Northam enjoys a vacancy rate of less than 3% across its entire portfolio and an industryleading renewal rate which it takes extra care in maintaining.

“If I’m going to see a tenant at renewal time, I’ll ask my colleagues here about any complaints they’ve had, any problems that have arisen, and if there’s anything else in their history I should know. Then, we’ll also consult our NorthamOne online database for any other information,” says Lucas, insisting, “The goal is to have all the answers upfront when I meet a client, and that strategy has proven very helpful to our success.”

This support within Northam is essential.

So too, however, is its network of brokers, agents, and industry partners who continually supply new connections and opportunities. As such, Northam dedicates a lot of its energy to strengthening these relationships through open communication, creative collaboration, and proven results.

“We’ve known Northam both as brokers and partners for a number of years, and

working with them is very refreshing,” says Mike Cowie, Executive Vice President of Colliers International. “They’re very creative landlords and investors. More importantly, they’re not bureaucratic. You can go right to the top and get answers right away. They’re able to move fast and that’s what makes them unique.”

Partnerships like these are a result of Northam’s genuine approach to relationship building. They’re also owed to its multi-faceted marketing strategy, which includes events like broker luncheons, site promotions, on-site presentations, and partner celebrations. Combined, these help to enhance Northam’s industry ties, facilitate the leasing of existing and future vacancies, and secure its investor’s goals.

“If we have vacant space, of course we’ll have those broker luncheons and functions. However, we find we have even more success when we’re able to bring in brokers from various firms and take them out to dinner or lunch where we can spend some one-on-one time really talking to them. For us, that’s time well spent; you build greater connections and you get a lot more accomplished,” says Lucas.

Other promotions have included working with marketing firms to run broker contests, offering commission incentives, and even filming and starring in Northam’s own short film, A Day in a Life of a Leasing Professional, which aired for the real estate community during a Hollywood-style screening in Canada Square.

“We had a lot of fun with that one, and we

”

try to do something different like that all the time. When you come to a Northam function, you know you’re in for something fun, original, and professional,” affirms Lucas.

Thanks to this strategy, Northam has cultivated a network of agents, brokers, and real estate professionals who are integral to the company’s ability to lease properties and achieve continued growth.

“That’s the big thing here: we do what we do best, and we let the experts do what they do best,” says Lucas. “We don’t try to be something we’re not.”

FULL SERVICE FROM START TO FINISH Fast, fluid, and pain-free. This is what separates Northam’s leasing process from the pack, and it’s an advantage owed to the strengths of its leasing department and the experience of its partners.

“We operate differently than the big companies,” offers Craig Walters, Executive Vice President and COO. “We’re not split up and we’re not divided. Our leasing group will look after every aspect of a deal from the first phone call to the signing of the lease, the construction of the premises, occupancies, and anything thereafter. That’s the benefit of being a smaller company; we can hold a buyer’s hand through the entire process, and we can operate that way so we don’t’ have to have this hard-line division.”

Adds Lucas: “Working as a team helps us deliver the best results for our tenants and, ultimately, our investors.”

Special Supplement to Canadian Property Magazine

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NORTHAM REALTY ADVISORS LIMITED

Investing with Confidence The right deals, the right decisions, the right people. These are the elements which drive Northam’s investment team, which works with its domestic and international investors to maximize profits and secure sustainable returns.

“We understand what our investors want, we pursue what they want, and we do it in a diligent manner,” says Todd Copland, Senior Vice President of Acquisitions.

Northam’s investment experience dates back to the 1990s, during which time it worked primarily alongside private, highnet-worth individuals with value-add private equity structured funds. It’s success soon made it the firm of choice for the German investment firm MPC Münchmeyer Petersen & Co. GmbH, who, in 2001, became Northam’s largest client to date.

“When MPC sought us out, everything became focused on them. They had such an insatiable appetite for property investments that we developed a huge program catering to them and began buying large volumes of real estate on their behalf,” recalls Craig Walters, Northam’s Executive Vice President & COO. Northam’s work with MPC later caught the attention of Union Investments, a large German open-fund firm for which Northam bought and sold real estate in the years that followed. Encouraged by its momentum, Northam then took the opportunity to blaze a trail of its very own.

“Because of our good track record, we were able to brand our own Northam funds,” explains Walters. “Now, we’re the general partner, we run these funds, and the investors commit their money to 18

them. For example, the first fund under this Northam structure is valued at over $400 million of equity with 13 investors in it, and we have full discretion to buy a wide variety of property types within that fund.”

Today, Northam’s investment roster includes major European-based insurance companies, pension funds, and high net worth families – all of which entrust Northam to do what it does best.

“On the lending side, Northam has conducted business with many different lending institutions that are active in Canada. They like doing business with us as we have a long track record of performing above expectations and making life easy for lenders. They know that we put money into all of our deals along side our investors and the fact that we are a full service real estate company gives them a lot of comfort,” notes Copland.

Northam’s most recent investments are comprised of two core funds. The first is a fully invested fund representing over $800 million in assets, and the second is on its way to representing $1 billion. On behalf of its investors, Northam primarily invests these funds in office retail and industrial properties across the country, be they classified as Core or Core-Plus properties.

“Core is what we call the average building across the street, whereas Core-Plus is the building across the street that may need a

little bit of TLC,” explains Copland. “We can give that TLC because we know how to underwrite, we understand what it costs to do that, and when it comes to actually buying the building and implementing those changes our Northam team can do that as well.”

From locating and underwriting properties to handling all aspects of asset management, Northam leaves nothing to chance. Yet while sourcing the best acquisitions is key, it’s the team’s dedication to disciplined due diligence that keeps every one of its partners on solid ground.

“What our investors want to end up with is solid, cash-flow properties in good locations, so finding the types of properties our investors want to purchase is the most important thing that drives us,” says Copland. “After that, prudently underwriting them and conducting strict due diligence is of huge importance.

“Overall, when we’re in a position to move on a deal, we want to know as much about that property as we can, and being able to do so relies not just on our acquisitions team, but our property management side, asset management side, and everyone in the office. We really rely on all the groups in Northam on any acquisition,” he adds.

No doubt, Northam’s investment acumen is owed in large part to its in-house team, many of whom are seasoned experts

Northam Realty Advisors Limited

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INVESTING WITH CONFIDENCE

in the Canadian real estate market. Its due diligence also relies on the input of its industry contacts, which include real estate brokers, agents, industry colleagues, and a city-wide network of service providers.

“As soon as we know there’s an opportunity, we’ll start working our contacts internally and externally to learn everything we can about it,” stresses Copland, adding, “We use a lot of our third-party consultants that we have a track record with, and many of those people we’ve worked with for well over 10 years.”

This network is also responsive to Northam’s deadlines, playing a crucial role in helping Copland and his team hit their deadlines. “We do a lot of business with them whether we’re buying or selling, so they give us great service in return. That’s helpful, because in today’s competitive market place you cannot get extended due diligence periods. We need to have a good rapport with these suppliers so they’ll provide a fast and complete service so we can properly meet our due diligence time frames.”

Without question, the ability to be nimble is crucial in today’s industry. It’s an attribute Northam carries with pride, and one it values in all of its real estate associates.

Speaking to its relationship with lenders specifically, Walters adds: “I think most service providers in this industry get it.

It’s the nature of the business – you just have to move quickly. This also goes for our lenders, who understand that they also need to be competitive to get the business.

While the same lender is not always appropriate to use in every situation, we frequently do business with the same

lenders as they understand our program and underwriting criteria, and are able to provide us with consistent commitments with no surprises. This can be an incredible advantage in a very competitive acquisition as the lender can communicate with the vendor if necessary to put them at ease.”

INVESTING IN GROWTH Over the last 15 years, Copland’s department has yet to drop a deal it’s had tied up. This track record that has put Northam in the spotlight among its German and domestic investment partners alike.

Moreover, Walters believes Northam’s willingness to invest in its own funds has contributed greatly to its reputation with investors throughout the years, noting, “We have aligned interest and are putting our money where our mouth is.”

It’s not enough to get the deal done. At Northam, it’s about ensuring the right deals are being pursued, the best partners are in play, and investors’ interests are always at the fore.

“We’ve been fortunate to build a great reputation, and that’s helped us move up the food chain over a period of time,” observes Copland. “It’s that same track record that helps us land investors, underwrite properties, finance properties, and enjoy a 100% success rate. Thanks to that, we’re dealing with large institutional investors who are writing us very large cheques to invest; and when it comes to working with our partners on the financial end, Northam will always be on the top of their list.”

www.northamrealty.com Special Supplement to Canadian Property Magazine

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