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. 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.
− 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
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
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 –
o Pace of data creation and movement is accelerating
o Demand significantly outpacing supply
o Mission critical real estate required as a result, for the foreseeable future
− Real Estate Approach Differentiator –
o 40+ years’ experience provides access, network, and discipline
o Value-Add lens has and continues to unlock value and niche opportunities
o Established investment pipeline
− Purpose Built Strategy Design for Digital Economy –
o Core-plus strategy
o Focused on hyperscale campuses and edge facilities
o 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.
October 2021 – TA Realty Sees Long Term Growth in Data Centers
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, DESIGN & CONSTRUCTION
The Senior Vice President of Design & Construction (SVPDC) will join TA Digital (TAD) reporting to Tim Shaheen and oversee the strategic and practical delivery aspects of all design and construction operations and personnel. The SVPDC’s charter is to provide the organization, with high conviction, that capital plans for capacity meet the investment thesis and remain in parallel with leasing capacity forecasts. The SVPDC will leverage their expertise in contributing to the collective vision shared by the investment team and shareholders. He/She will ensure the design and development of data center products that meet the rapidly evolving and ever- changing definitions and demands of large enterprise and hyperscale customers. This will require executive oversight and synthesis of design, financing, procurement, product, sales, and operational inputs into a progressive and efficient delivery platform.
An innovative executive with demonstrated experience leading a culture of best practice excellence is paramount to the success of TAD’s business. Establishment of design and construction processes, methodologies, policies, practices, and standards to ensure the highest level of client service and performance reliability is mandatory. Apparent command of critical facility design, engineering, construction, and sustainability principles, practices, and procedures are crucial. An ambition to think and act strategically and articulate an effective vision for green techniques, procurement, and other progressive efficiencies are base criterion for success.
The SVPDC will contribute their strategic inputs to TAD direction as a member of the “Tiger Team” (TT) which will include data center subject matter experts in strategy, finance, leasing, technology, engineering, and operations. He/She will oversee and manage Engineering, Design, Construction and Sustainability of all TAD’s data center facilities to include –
− Leadership of design and construction teams to ensure seamless delivery of new inventory on named campuses.
− Explain via business case presentation the relevancy of information to executive and board level individuals.
− Exceptional analytical and decision-making skills required for understanding and evaluating complex problems, including analyzing, identifying, and selecting the best solution.
− Able to prioritize work based on business and customer demands, articulate concepts and ideas to a non-technical audience, and lead customer requested business reviews and audits.
− Provide thought leadership as TAD looks to remain nimble and evolve its product delivery to meet progressive market demand.
− Collaborate extensively with TT to develop plans and strategies aligned with investment and revenue goals and keeping inventory ahead of leasing requirements.
− Provide thought leadership as TA Digital looks to remain nimble and evolve its product delivery to meet progressive market demand
− Collaborate extensively with TT to develop plans and strategies aligned with revenue goals and keeping inventory ahead of leasing requirements.
− Identify process improvement and cost savings. Evaluate, implement, and resolve as needed.
− Strong understanding of data center design and how it impacts SLA agreements.
− Manage and positively influence key customer relationships, vendors, and partners in the design, build, procurement, commissioning, and turnover to operations ecosystem.
− Oversight and accountability for preparing, presenting, negotiating, and delivering to appropriately risk managed contractual obligations.
− Implement and manage programs for safety, maintenance, process improvement, business continuity, and certification and qualification for personnel.
− Provide valued and insightful input into the annual budgeting and planning process
KEY QUALIFYING CRITERIA
Data Center Design & Construction – Evaluating the breadth and complexity of data center environments designed & built.
− Demonstrated success in a breadth of large capacity design requirements resulting in an immersed library of knowledge to apply to customer requirements, including ESG.
− Extent of project list of data centers constructed reflecting a breadth of topologies in terms of size, locations, complexities, and customers.
− A track record of delivering products and projects safely, on schedule, and under budget.
− Demonstrated command of the design build contract theatre of engineers, contractors, suppliers, labor, safety, security, audit, and public / municipal authorities.
Business Acumen – Growth oriented commercial disposition with innovative thought leadership eager to contribute value with the TT. Understanding of human capital leverage, resource allocation, and technology utilization leading to efficiencies and profitability.
Financial Acumen – Experience in a data center real estate invested environment with requirements for investor rates of return, customer acquisition, and platform standardization for increased value creation.
Leadership – Experience integrating geographically disparate resources and services to a common platform. History of empowering teams via servant leadership which aligns visions and builds an empowered culture.
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.
The compensation package for the SVPDC 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.
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 early September 2023. 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.