The Pinecrest Building at 6601 Little River Turnpike is one of 8 properties DRE manages for Kronstadt.

 Kronstadt Appoints Divaris to Manage 750,000 Square Foot Metro D.C. Portfolio

WASHINGTON, D.C. - Allen Kronstadt recently appointed Divaris Property Management Corp. as property manager of his 750,000-square-foot Washington, D.C., portfolio, which includes industrial, retail, and office properties.

Alan Luger, principal of Divaris Real Estate in Maryland, said that "Divaris is providing a full range of property management services, including overseeing the physical facilities, tenant relations, accounting and rent collection for the portfolio."

The portfolio includes Randolph Hills Industrial Park, a seven-building, 391,000-square-foot complex; the 91,400-square-foot Randolph Hills Shopping Center, 14650 Southlawn Lane, a 42,000-square-foot, small-bay industrial complex; Woodberry Square, a 53,700-square-foot shopping center; 9135 Piscataway Road, a 27,400-square-foot medical office building; The Pinecrest Building at 6601 Little River Turnpike, a 30,800-square-foot office building; Ashdale Plaza, a 34,400-square-foot shopping center; and the 90,100-square-foot Mid Sussex Shopping Center in Hillsboro, Delaware.

Kronstadt interviewed several potential property managers before ultimately choosing Divaris. He explains that "although there were a number of contenders, I felt that Divaris presented the advantages inherent in a large, diversified company. Also, Divaris had experience and knowledge of the area, and I knew that they would give the portfolio due attention."

During negotiations, Luger and the staff at DRE determined that "[Kronstadt] was looking for an active, 'hands on' approach, and we were able to provide him with the quality of service that an owner is entitled to expect. Additionally, Divaris provides investment real estate, property development and asset management services."

Luger explains that "if a property is not well-maintained physically and properly operated, it can have a negative impact on the property's ability to attract customers and therefore, tenants."

The process that Divaris goes through to establish a management plan for a new portfolio begins with a thorough assessment of each property. Significant facility and operations problems are identified. This leads to recommendations and ultimately to the implementation of solutions.

Luger points to the Randolph Hills Industrial Complex as the most complex property in the portfolio. The 387,000 square feet is comprised of seven different buildings, one of them multi-level. The variety of buildings presents "opportunities ranging from large-bay warehouse uses to office/showroom type uses.  Kronstadt has already converted one of the smaller buildings for office/showroom use, and is now working on converting another. These repositionings have changed the entire nature of the property," said Luger.

Divaris Real Estate recently moved its Washington, D.C./Maryland office into new premises leased from Kronstadt.

"We are very happy to be associated with Allen Kronstadt. He has a long and distinguished career in this real estate market. His prior work with Zukerman-Kronstadt made him one of the most significant owner/managers of retail, office, and multifamily units in this region," said Earl Goodman, also principal in Divaris' Washington, D.C. office.