McCann Realty is slowly easing itself into the marketplace. The company acquired two apartment communities in Richmond and then formed a partnership with Silver Capital, a Boca Raton, Fla.-based development and investment firm, with plans to invest $100 million in the next two years.
The company isn’t looking to compete with the big players, but rather to carve out its own niche. Its investment strategy is simple: Acquire B-class assets, ranging from five to 20 years old, in need of cosmetic or management upgrades. “The really brand new shiny pennies are highly sought after by a lot of institutions, and we are just not really competitive at that price point,” says Inlow.
McCann Realty relies heavily on its strong industry connections, which helped them close all three of their first deals. “John McCann has enormous name recognition and an impeccable reputation in the apartment industry,” adds Inlow.
Of course, McCann’s playing field has dramatically changed. A small firm means much less stress and pressure and more time for McCann to focus directly on his passion: real estate. “You spend an awful lot of time on people [at large REITS], and you are pushed farther and farther away from the real estate. This is a smaller scale, and you directly touch the real estate, which you don’t do as a CEO of a large company,” says McCann.
But being a small-company man isn’t a new gig for McCann, who led UDRT when it was just he and his secretary. “John grew UDRT from $25 million of assets to a company with over $3 billion of assets,” says Toomey. “So he is familiar with being the guy who does everything to the guy who runs a large, multibillion dollar enterprise.”
At age 61, McCann is happy doing what he enjoys on his own terms, without the quarterly reports and other public-company pressures. “And if I don’t want to come into my office until 10 o’clock, it’s OK,” McCann says. Talk about a well-earned luxury.