Q&A with Dmitry Gordeev, Ph.D., M.B.A. – Founder & Managing Partner of Fairbridge Properties
- Jul 15, 2015
Princeton, N.J.-based Fairbridge Properties acquires, develops and manages commercial properties in the average asset class range of 10 to 45 million dollars. Founded in 2012 by Dmitry Gordeev, Ph.D., M.B.A., the company holds a superior track record in acquiring premium central business district office buildings, suburban office centers and flex/R&D projects.
Most recently, Fairbridge Properties added the 12-story, 305,000-square-foot Landmark Center in downtown Indianapolis to its portfolio.
Q: Why have you chosen this particular property and what trends do you see in the Indianapolis office market?
A: We see a tremendous amount of potential in the Indianapolis office market. The area has grown at nearly twice the national average, and we expect that this growth trend will continue. We’re seeing a significant increase in recent graduates from out-of-town universities, who are returning to the area because of opportunities created by successful corporations like FedEx, Rolls Royce and Roche Diagnostics as well as smaller businesses, such as our tenant Coordinated Care, who are all doing well.
Prior to purchasing Landmark Center, we carefully analyzed the property and the surrounding market. The strength of the building’s long-term tenants, its excellent physical condition and its strategic location in the Central Business District made this an ideal investment for us.
Q: What type of assets do you typically focus on?
A: We typically look to identify and acquire undervalued commercial, industrial and retail properties that are priced below replacement cost. For every investment, we thoroughly analyze the potential to generate strong cash flow and long-term value relative to the purchase price and capital investment.
We also look at the market fundamentals of the particular area in question. What is the vacancy rate in the immediate area? Is there or will there be new construction? We often seek out Class A commercial properties in secondary markets where we can attain a higher cap-rate and consistently reward our investors with outstanding yields.
Q: What are the company’s plans in the near future?
A: Our plans are to continue to grow the company by actively seeking out the right commercial real estate investments in primary and secondary markets.
Q: What are your priorities and what challenges do you foresee?
A: Our priority right now is to continue to generate, maximize and preserve as much value as possible for our investors. While we want to grow our portfolio, it can’t be at the expense of our investment principles. Every investment decision is made carefully after extensive analysis of the building itself and its surrounding market.