| POSITION | Senior Vice President Operations |
| REPORTS TO | Tim Shaheen, Chief Development Officer, TA Digital |
| DATE | January 2024 |
| WEBSITE | https://tarealty.com/ |
| SEARCH CONTACT | Andy Lane @ CFS Partners M +1 414 807 4085 E andy@criticalfacility.com |
TA REALTY OVERVIEW
As one of the largest real estate investment firms in the nation, TA Realty has acquired, invested in, and/or managed over $39 billion of real estate on behalf of hundreds of U.S. and non-U.S. institutional investors and clients. TA Realty’s investment philosophy focuses on creating diversified real estate portfolios that aim to generate strong cash flow, receive intensive asset management and seek to achieve long-term value creation. For more than three decades, TA Realty has maintained this philosophy through multiple real estate and economic cycles, a strength recognized by pension funds, endowments, foundations, and high net worth individuals.
TA’s singular focus on domestic real estate investment enables them to build strong local relationships in key markets, resulting in first-look access to opportunities. Delivering value to investors and communities across real estate sectors. TA’s entrepreneurial and collaborative approach prioritizes strong returns for their investors—and their many long-term relationships as evidenced by TA’s commitment to their best interests.
TA Realty is headquartered in Boston MA with 115 professionals across real estate disciplines and geographies to include offices in Dallas TX, San Francisco CA, and Newport Beach CA. TA Digital is comprised of 24 partners, each of whom average 28 years of real estate experience and 18-year tenures at TA Realty. These successful tenures result from aligning with investors through significant co-investment, broad sharing of carried interest, and significant Partner ownership of the Firm. TA Realty executives have tremendous experience investing and managing in multiple real estate markets over broader economic cycles which creates a unique competitive advantage.
TA REALTY HISTORY
Founded in Boston, MA in 1982, TA Realty has been one of the top private real estate investment firms in the United States. Their philosophy has not changed, and as they continue to grow their offices and national portfolio, they remain committed to their entrepreneurial spirit and focused approach to investing.
TA Realty LLC is 70% owned by Mitsubishi Estate Co, LTD. (MEC) and 30% owned by TA Realty’s Partners. MEC is a fully integrated real estate services company whose consolidated businesses offer development, property management, asset management, investment management and real estate services across the office, residential, retail and hotel sectors internationally and in the US. TA Realty is MEC’s primary real estate investment management platform in the US.
Key Metrics
– Managed, acquired, or invested over $39 billion since 1982 (as of 9/2022)
– Over 1,200 industrial, multifamily, retail, office, mixed-use, and data center investments acquired over 40 years.
– Seasoned partners averaging almost 30 years of experience.
– One of the largest Investment Managers, buying/selling, of industrial real estate in the U.S.
– TA Realty has over $20B in current AUM; Mitsubishi Realty has over $100B in current AUM.
– Dedicated research focused on adding value throughout the life of the investments.
– Establishing a culture that places ESG+R at the forefront of operational processes
INVESTMENT APPROACH
TA Realty is focused exclusively on private real estate investment in the United States, with deep expertise in acquiring, developing, managing, and selling real assets. Their goal is to build U.S. real estate portfolios diversified both by geography and property type, creating a balanced risk / return profile—and giving them the flexibility to successfully respond to changing capital market and real estate environments.
Value-Add Closed-End Strategy – TA Realty sponsors and manages value‐add closed-end real estate strategy, with approximately $5.9 billion in gross assets under management. TA invests in four main property types: industrial, multifamily, office and retail, with an emphasis on industrial holdings. Focusing on small-to-medium Investments, with an average asset size of approximately $25-$30M. TA Realty has experience investing across approximately 30 markets throughout the United States. They build portfolios with moderate leverage, capped at 50% loan-to-value.
Core Open-End Strategy – TA Realty’s core open-end strategy leverages decades of real estate experience to construct and operate a well-diversified portfolio of institutional-quality, core real estate holdings in major U.S. metropolitan areas, with an emphasis on steady income generation. Since 2019, TA Realty’s core open-end strategy has been reported to GRESB annually. TA Realty’s core open-end portfolio is strategically constructed with an overweight to industrial and multifamily vs. industry peers. The investments are concentrated in major U.S. gateway markets with an emphasis on steady growth and income generation. The investment strategy is diversified by property type, geography, industry exposure and tenancy, with hands-on asset management that drives Income growth at the property level.
Customized Separate / Advisory Accounts – TA Realty develops customized investment plans to meet clients’ objectives. Their experienced real estate professionals work closely with each client through acquisition, asset management, and disposition of assets. Their investment parameters vary based on each client’s expressed objectives around strategy, transaction size, geographic focus, property type, and leverage position. Portfolios typically have a core or build- to-core focus, occasionally concentrating on investment in a particular product type. Customized separate / advisory accounts totaling $4.3 billion in gross assets under management.
INVESTMENT APPROACH CASE STUDIES
Location: Corona, CA
Size: 267,050 sq ft
Data Acquired: June 2017
Location: Pembroke Pines, FL
Size: 146,081 sq ft
Data Acquired: Dec 2018
TA DIGITAL
TA Digital was unofficially created in January 2023 with the appointment of Tim Shaheen as Chief Development Officer, Digital Real Estate. Tim is widely recognized as one of the most successful commercial executives in the data center market with impactful growth tenures with EdgeConneX and Aligned Data Centers. Tim is accountable for the strategy, planning, and execution of TA Digital in the development of its data center portfolio sites and leasing. TA Digital is the culmination of long-term strategic planning following Mitsubishi’s interest in digital infrastructure investment. TA Realty’s differentiating factors include their experience in fund sponsorship, their extensive network, a purpose-built platform focus, and an established and growing pipeline. TA Digital’s investment thesis is to capitalize on this growing, but fragmented digital infrastructure sector expected to have outsized impacts on the future economy by investing in the underlying real estate and ecosystem –
− Strong Market Fundamentals –
– Pace of data creation and movement is accelerating
– Demand significantly outpacing supply
– Mission critical real estate required as a result, for the foreseeable future
− Real Estate Approach Differentiator –
– 40+ years’ experience provides access, network, and discipline
– Value-Add lens has and continues to unlock value and niche opportunities
– Established investment pipeline
− Purpose Built Strategy Design for Digital Economy –
– Core-plus strategy
– Focused on hyperscale campuses and edge facilities
– Currently 4 strategic assets in core markets with additional pipeline
TA DIGITAL LEADERSHIP
TA Realty brings together senior partners, with an average of nearly three decades of experience, and high-performing employees who thrive in our entrepreneurial, results-focused culture. This balance of stability and innovation sets them apart in a crowded and complex real estate investment landscape. TA Digital’s Real Estate Fund Team is comprised of Ali O’Rourke and Dave Buxbaum who head Portfolio Management and Asset Management respectively. They join an Advisory Group and firmwide resources to include Research, ESG+R, Valuations, Tax, and Investor Accounting services to support and assure the investment success of TA Digital.
Tim Shaheen
Chief Development Officer, Digital Real Estate
LinkedIn Profile
Allison O’Rourke
Partner
Portfolio Management
LinkedIn Profile
David Buxbaum
Partner
Asset Management
LinkedIn Profile
COMPANY NEWS
April 2023 – TA Realty Selected as 2023 Green Lease Leader by Dept of Energy Better Buildings Alliance and the IMT
April 2023 – Tim Shaheen of TA Realty forecasts record breaking year for data center growth
October 2021 – TA Realty Sees Long Term Growth in Data Centers
May 2021 – TA Realty Launches Development of Data Center Campus in Loudon County, VA
May 2021 – TA Realty planning $1.8B 300MW data center campus in Loudoun County VA
ESG+R MISSION STATEMENT
TA Realty is committed to evaluating our investments with a holistic sustainability approach, incorporating Environmental, Social, Governance and Resilience (ESG+R) into the evaluation and decision-making process. We incorporate ESG+R issues into our evolving policies which adds to our responsible business practices and seeks to positively impact our assets’ financial performance now and for the future. As a fiduciary, our selection of initiatives involves thoughtful analysis of expected results including the impact our assets have on the environment, the impact the environment has on our assets (climate change), our carbon footprint, and the environment in which our employees and tenants live and work. Sustainability factors are considered throughout the investment process, at all stages of an investment’s lifecycle; development, acquisition, operation and through disposition. Investing in ESG+R is expected to help future-proof our assets by decreasing operating costs, increasing tenant awareness, lowering environmental impacts, and mitigating physical and transition risks associated with climate change. This approach enables us to manage our risks and strive to create and preserve more value over the long term for our clients.
SENIOR VICE PRESIDENT OPERATIONS
The Senior Vice President of Operations (SVPO) will join TA Digital reporting to Tim Shaheen, Chief Development Officer, and oversee the day-to-day data center business operations and personnel. The SVPO’s charter is to lead teams in the integration and performance optimization of TA Digital’s multiple, geographically dispersed state-of-the-art data center campuses. The SVPO will ensure the portfolio exceeds uptime requirements relating to existing SLA’s while delivering a high performing operational plan for future data center capacity in new locations as TA Digital grows.
An innovative operating executive with demonstrated experience leading teams toward a culture of best practice excellence is paramount to the success of this role. This chapter of TA Digital’s growth requires both an extemporaneous and critical thinker to apply innovation and technologies with material business process improvements and efficiencies. Demonstrated leadership in the empowerment of contributions from the team to work smarter is necessary. The establishment of operational processes, methodologies, policies, practices, and standards to ensure the highest level of client service and performance reliability is mandatory. Apparent command of critical facility system operations, maintenance, engineering and design principles, practices, and procedures are also crucial. An ambition to think and act strategically and articulate an effective vision for green techniques, procurement, buy vs. build, and other Total Cost of Operations considerations is a basis of criterion for success.
DUTIES & RESPONSIBILITIES
The SVPO will direct and leverage the current team to fulfill the comprehensive list of specific responsibilities listed here:
Data Center Operations Leadership –
– Lead TA Digital’s data center footprint performance optimization by effectively managing all daily mission critical operations and personnel at data center sites.
– Collaborate with the business leadership, local site Directors, other IT resources, and outside vendors to align the data center operational model with the needs of TA Digital’s existing and prospective clients.
– Establish a baseline service level for internal teams and partners and endeavor to implement improvements to operational efficiencies and service delivery.
– Deliver best practice SOP’s for Operations and Security as it relates to maintaining dashboards, following applicable codes and requisitions, and designing controls to optimize data center efficiency and reliability.
– Anticipate data center technology and market direction and integrate appropriate changes to operational practices to remain current with trends and solution providers.
– Lead, negotiate, and manage existing and prospective TA Digital’s owned asset and portfolio operating agreements.
– Lead, negotiate, and manage all vendor relationships relating to TA Digital’s future investments where capital is expected to be deployed to upgrade existing assets or build to suit opportunities exist.
– Manage planning and implementation of enhanced building management systems that improved inventory tracking, capacity controls, and improved reliability.
– Implement measuring systems for power utilization effectiveness (PUE) and water usage effectiveness (WUE) that lead to a reduction in utility costs and carbon emissions.
Business & Personnel Leadership –
– Implement and manage programs for safety, maintenance, process improvement, business continuity, and certification and qualification for personnel.
– Recruit, motivate, educate, and develop highly effective data center operations professionals. Continually enhance the team to ensure a culture rooted in innovation, collaboration, and effective execution.
– Solidify succession plans and make apparent directives and capabilities to meet strategic and operating objectives.
– Ensure the data center operations teams are empowered to achieve business objectives and goals. Deliver 100% uptime and reliability to ensure the highest possible client service and satisfaction resulting in retention, expansion, and reference ability.
– Utilize external benchmarks to establish performance metrics for internal and outsourced teams.
– Reengineer and strengthen organizational structure to keep pace with rapid growth and ensure company’s ability to meet operational, employee, financial, sales and service demands.
– Expanded facility and security groups to support uptime and service level agreements.
– Create facilities and security certification programs to ensure personnel are properly trained and qualified to support client’s complex and evolving demands.
Portfolio Operational Excellence –
– Ensure sustainable data center operations performance are optimized across the portfolio.
– Participate in and remain cognizant of TA Digital’s extended real estate investment value considerations and ensure operations decisions are aligned.
– Manage portfolio P&L with a keen eye toward profitability while integrating separate platform and asset operations.
– Oversight and management of the data center portfolio, including implementation of operational and service enhancements, monitoring performance, and internal reporting.
-Track and correct actual performance of portfolio versus plan. Present detailed plan to resolve performance deficits. Design, maintain, and report on key operational metrics.
– Orchestrate relationships with out-sourced facilities operations and service partners. Negotiate, audit, and drive optimal service agreements. Present status and performance against target reports.
-Ensure company policies and legal guidelines are communicated across the organization and are followed at all times.
KEY QUALIFYING CRITERIA
Data Center Operations Management – Demonstrated history of standardizing data center assets and platform operational performance excellence across significant sized, geographically dispersed data centers. Specifically adept managing client move-ins and movement.
Data Center Operations Playbook – Both a history of authoring the playbook but also implementing the necessary MOPs, SOPs, & KPI’s to normalize behaviors that increase performance, effectiveness, efficiency, and predictability.
Leadership – Demonstrated knowledge of broader data center business and fiscal matters, as well as a history of hiring and training high performing and positively aligned personnel, organization, and culture.
Development & Capital Planning – History of inception to disposition to include due diligence on buy vs build, business case justification on upgrade / build decisions, site selection, design, construction, project management, commissioning, and through to ribbon cutting.
Growth – Participation in the growth chapter of a digital infrastructure business making decisions impactful to value creation. Understands courageous decision making requires a unique blend of humility, servant leadership, and gravitas.
Entrepreneurial – Ambition, courage, and eagerness to grow a greenfield business initiative. Embrace a lean, self-starting, accountable, and energetic environment where ideas and daily activities define ambiguity and impacts TAD’s resulting value creation.
WHY CONSIDER THIS OPPORTUNITY WITH TA DIGITAL?
Ambition – TA Realty and TAD have embarked on a precedent setting data center development growth platform which meets next generation capacity demand requirements for hyperscale, cloud, and other large scale technology hosting and processing capacity.
Differentiation – TAD’s value proposition to the market and their customers is a deep expertise and intellectual resources to approach and deliver solutions in a more innovative and efficient manner than the market norm, resulting in outsized value creation initiatives.
Horsepower – TA Realty’s executives, global investors, and valued partners have been putting the plan for TAD together for a few years. The resources committed to the success of this initiative are substantial and all in place to launch this platform.
Precedent – TA Realty’s executive team possess remarkable track records in bringing large, ambitious capital plans together. TAD will benefit from their sophisticated investment, business building, and operational expertise in other market verticals to leverage for future growth.
Leadership – TAD is already comprised of a uniquely and exceptionally qualified team of investment and commercial professionals who have demonstrated remarkable success in their respective professional histories. This team requires an enduring TT built to win.
COMPENSATION
The compensation package for the SVPO will be determined on a case-by-case basis, relative to the finalist candidate requirements. It will include a competitive base salary, annual performance bonus, comprehensive health package, and long-term incentive compensation in the form of equity based on project and performance milestones.
SEARCH PROCESS
Following the receipt of a resume and mutually addressing Key Qualifying Criteria, culture fit, and professional motivation, we’ll make an Introduction to Tim Shaheen @ TA Digital in January 2024. Finalists will subsequently meet with members of TA Realty’s leadership team. The selected finalist will be presented with a compelling and competitive offer contingent on background check and thorough references.