Episode 24: Show Notes
Today on the show, we welcome Onic V. Palandjian, a partner of Group RMC, to discuss investing in office real estate. Office has become a controversial property type within real estate, given the massive disruption COVID-19 caused in occupancy rates, the debate around work from home and what normal looks like as the pandemic subsides. Onic talks about what attracts him to office real estate today, where he is finding value in the market, and what he looks for when deploying capital. Group RMC owns 21 million square feet of office property, So Onic has a unique on-the-ground perspective of trends. Tune in for this fascinating discussion!
Key Points From This Episode:
- The origin of Group RMC and their investment approach through various cycles
- RMC’s investment philosophy of looking for bargains, being contrarian and investing in unpopular markets
- How they source deals and ideally try to be a provider of liquidity to funds approaching their end-of-life
- What gets Onic excited about office real estate today, and how they look for deals below 70% of replacement cost and 7-10% cap rates
- Why deals between $50mm and $150mm in size are a sweet spot
- How they counter-intuitively like buying properties with low vacancy rates, and why that can improve returns over time
- Discussion around COVID impacts on office real estate, and how tenant preferences of building layouts and amenities have changed
Onic is a Partner at Group RMC www.grouprmcusa.com. Throughout his 30 year career he has been instrumental in originating and executing investments in excess of $2.5 billion in shipping, technology, industrials and real estate.
He provides family offices and institutions direct access to income-producing investments. RMC’s strategy focuses on commercial real estate, acquired at steep discounts, that produce passive income and upside.
Onic earned a BSc in Management from Bentley University and a CSS in Business Administration from Harvard University.