One of APOGEE’s main cornerstones is CapEx (Capital Expenditure) improvements. As Metonic’s sister company, the team plays a crucial role in the process of the decision to move forward with (or abandon) the acquisition of a new asset. Hear from APOGEE’s VP of Construction, Joe Druskis, about the team’s involvement throughout Metonic’s acquisition process and how CapEx decisions are made in this installment of “Not So Average Joe.”
Q: How early in the acquisition process do you get involved? What does that involvement look like?
A: I typically get involved prior to signing the purchase agreement, during the due diligence period. The team will start with an exterior walk of the property to review draining, parking, stairs, railings, accessibility, etc. Next, I’ll review the building’s unit systems, electrical, fire and life safety, elevators, etc. any other major components. This all helps to make a more informed decision about the future of the project down the line.
Once the purchase agreement is signed, APOGEE will engage a number of contractors to provide a bid package which details the work to be completed. Careful strategic review of these items will insure if we decide to move forward with the purchase and provide us with a good idea of the cost, timing, etc.
Q: When Metonic closes on a property, what are the next steps for CapEx? How do we determine what needs to be done?
A: The team begins almost immediately with the initial work outlined in our plan, which is finalized with Metonic prior to closing. Our team will then work with the contractors to schedule work to ensure that the site team can focus on operations and the leasing of the property.
Q: What does the oversight process look like for the projects?
A: Boots on the ground oversight and consistently checking on the project is the most important ingredient to the success of any project. Our first hand experience is definitely the “secret sauce”. We are constantly communicating major milestones to the team, reviewing and approving of all the contracts, invoices, and partial/final lean waivers, and coordinating communication between the contractors, property management, asset management and lenders. We work diligently to keep everything running as smoothly as possible so that the end result and timing are beneficial for everyone involved.
Ultimately, our goal is to create raving fans of the people who use our real estate and investors who invest in it. Our expertise in the realm of CapEx definitely contributes to that.