Our NC Construction & Real Estate Investment Criteria
One of the hallmarks of Mangum’s success and proven track record is the ability to put some work into due diligence on a project, create a pro forma, and analyze the deal. And if it doesn’t fit our conservative North Carolina property investment parameters, we have the ability to politely decline involvement in a real estate investment and move to the next one.
Mangum approaches each investment through the Mangum Cost/Benefit Analysis that identifies the likelihood of success. Mangum typically looks at 80 potential real estate investments each year and only a handful are chosen to develop.
Analyzing Property Investments Using Real World Parameters
Mangum uses market specific occupancy rates and simulates actual events that will occur during the life cycle of the building. Mangum’s vast experience in many commercial property development projects spanning decades. When Mangum talks to you about office space, we discuss our proprietary stress tests using actual experiences.
- Skill Set Specific: Mangum only develops industry specific projects where we can offer value and a competitive advantage for both investors and tenants.
- Market Saturation: We position our investment within areas where there is a large potential for growth.
- Brand Strategy: Our investors and tenants want a consistent message to be present in their own business models. We assist tenants in formulating and developing a brand strategy if one does not currently exist for their practice or business.
- Conservative Approach: We identify projects that have the potential to generate reasonable returns given industry-specific preexisting market conditions. Our parameters include comparable occupancy rates in the market, as well as contingencies for additional tenant occupancy after long term leases expire. One of our strategies is to look forward and construct buildings that will compete with properties that will be built in the future. Since Mangum’s holding strategy is long term, we are thinking long term into how we configure second generation space to be attractive to the next tenant.
- Exit Strategies: Our approach also provides exit strategies for investors and tenants that may age out or retire. They must be reasonable and responsible.
- Holding Strategies: “Our favorite holding period is forever.”
“Our business model does not focus on short term acquisition and disposal.”
- Moral Focus
“Mangum only develops property that they would be willing to invest in.”
- Ego Analysis
Mangum has the ability to say “no” to deals that require excess risk, even at the sacrifice of greater short term profit. It begins by asking our ourselves what our motives are for developing this project. If more money and more power hold positions 1 and 2 on the list, the project is delayed and kicked back until better motives exist. Ego clouds vision that breaks bank accounts, and our firm is keenly aware of this fact.
Founded by Kevin Mangum, Mangum Design-Build has experience in medical office buildings, warehouse development and construction. We are also an C-Level custom home builder. We have office locations in Raleigh, NC; Morrisville, NC; Clayton, NC; Wilmington, NC; Myrtle Beach, SC & Xiamen City, Fujian Province, China.