This week, I met virtually with Ryan Hess, Controller for L3 Capital in Chicago. L3 is a new Pereview client and is currently in the process of implementing the software as their all-in-one solution for asset management. Ryan talks about what the firm expects to gain from Pereview and how it will help the firm make better decisions more efficiently.
First, a little about L3. L3 Capital is a best-in-class, boutique, prime urban retail and mixed-use real estate investment firm that targets institutional quality core-plus and value-add urban retail investments within first-tier metropolitan markets. Founded in 2009, L3 Capital is characterized as an entrepreneurial, innovative, and high-energy real estate investment firm that is grounded in impressive experience and expertise.
Daryl Pitts, Pereview: As you begin to utilize Pereview at L3, what do you anticipate being able to accomplish that differs from how you’ve done business in the past?
Ryan Hess, L3 Capital: “The biggest hope is that we will have clear visibility into the entire L3 portfolio. Historically, we didn’t have visibility at all times into what everything looked like. I believe that once we’re able to aggregate all data from all the different sources we invest with, compile it, and show it at a portfolio level – that will help us make better, more informed decisions.”
DP: And we’re talking about all types of data, too, right?
RH: “Retail, development … aggregating costs, historical data, and future-focused data. For acquisitions and leasing, we’re big on demographic data, which helps us make more informed decisions on where we want to buy. So, being able to utilize and run reports on demographic data, that would be very powerful.”
DP: How do you leverage demographic data in order to know where to buy?
RH: “We use that data to help us in our underwriting. Purchasing power and the value of assets can be so different block-by-block, so we utilize demographics to help us identify submarkets and then drill down to see where the activity is and where the foot and vehicular traffic is.”
DP: Where are you getting that demographic data today?
RH: “We used SiteSeer in the past, and then we decided to try out Esri and we’ve been using that for the past six months. We really like Esri. And then there’s the old-fashioned stuff – talking to brokers and getting information from the brokerages – we’ve been doing that for a long time. But that demographic data, for us, is really becoming powerful in helping us make decisions.”
DP: It sounds like having greater insight will be a big benefit L3 will gain from Pereview. How do you think having that insight will improve the way you do business?
RH: “I would say it comes down to efficiency. Historically, Daryl, our team hasn’t seen all the data from an asset in one place. So, when you’re able to visualize all that information and see it and say, ‘Oh, I thought repairs were going to be that, but now I see it’s this, and now I have a better idea as to why.’ I think that when people have that ability to do that, then they will become more efficient.”
DP: Of course, the pandemic has also upset our event calendars. Irrespective of COVID-19, what have been some of your favorite industry events and functions to attend or support?
RH: “Well, we’re big into ICSC [International Council of Shopping Centers]. Some of our principals are members of Urban Land Institute, so they are heavily involved in that. We as a company have done activities with JDRF [Juvenile Diabetes Research Foundation] – they have a little real estate challenge here in Chicago that we’ve done. Internally, we have pretty strong initiatives that help us determine charitable organizations that we feel strongly about and help us improve our ESG [Environmental, Social, and Corporate Governance] initiatives.”
DP: And finally, it’s our favorite question to end on: What are your favorite sports teams?
RH: “Me, personally? It’s the Bears!”
DP: Go Bears! Thank you, Ryan – we are very big L3 fans and glad to have you as a Pereview client. Let’s get some Garrett Mix® popcorn on my next trip to Chicago!
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