Commercial Real Estate Finance

Jon A. Cummins
Chief Operating Officer
Amerimar Enterprises, Inc.

Jon Cummins is the Chief Operating Officer of Amerimar Enterprises, Inc., a position he has held since 2001. Amerimar’s focus is on the acquisition of “value added” hotels, apartments, office and retail properties in major urban/suburban markets throughout the United States. Mr. Cummins’ primary responsibilities are the general oversight of Amerimar’s operations as well as the sourcing, acquisition, asset management, property management, financing and disposition of the Company’s hotel and multifamily properties. Before joining Amerimar in 1989, Jon worked in the Real Estate Investment Banking Division at Lehman Brothers in New York where he was involved in the placement of debt and equity financing vehicles and the acquisition of property for the firm’s own account.

Q: As a company, tell me about the niche you have carved out for yourself and how you feel you are different from the competition. Why do you find this product type more appealing than alternative real estate asset classes?

A: Our focus is on value added real estate opportunities across multiple asset types (hotel, apartment, office, retail).  The thread that ties all of our properties together is the value added component, rather than a particular asset class.  In each case, we have executed a meaningful renovation and repositioning strategy encompassing all aspects of the property’s operations and sales/marketing/PR programs.

While our diversification within asset classes is a bit unusual, we have teams with distinct expertise in each asset type in which we are involved.  This enables us to operate effectively in each of these asset classes.

Q: Are you implementing any green technology into your assets? Do you think it is a good strategy economically? Why/why not?

A: Absolutely, we are implementing green technology to different degrees in each of our properties.  In fact, we have become a leader in the field of “green hotels.”  Our most recent hotel project, the Hutton Hotel in Nashville, is one of the greenest hotels in the country.  Green features include both physical initiatives (such as LED lighting throughout the property, laundry water recycling, bamboo case goods in all rooms, state-of-the-art HVAC systems and energy saving elevators) as well as operational initiatives (such as the use of sustainable seafood in our restaurant, “buy local” provisioning and extensive recycling programs).

As far as the economics, many projects (such as laundry water recycling and LED lighting) have a fairly quick payback period.  Others, such as using a sustainable wood like Bamboo, really have no quantifiable payback.  We feel that some green initiatives should be done just because they are the right thing to do.

Q: What is your favorite part of your job? Least favorite?

A: Favorite is the process of creating a new hotel project; integrating architecture, design, branding, operations, sales/marketing.  Least favorite was seeing hotel employees laid off last year as business contracted enormously.

Q: How has your strategy changed as a result of the credit crisis?  Have you expanded/narrowed your acquisition criteria? If so, to what, and why?

A: We were actually quite fortunate in that we sold about 40% of our portfolio between 2005 and 2007.  As a result, we went into the credit crisis with strong liquidity and an intention to be net buyers.  We haven’t changed our investment criteria or approach during this period but, to date, we haven’t seen all that much to get excited about in terms of acquisitions.  The bid/ask spread remains stubbornly wide, though it seems to slowly be moving together.

Q: How did you get your start in the business?

A: Out of college, I worked for Lehman Brothers. It was a great way to see a large amount of transactions in a short amount of time, work with/for some smart people and really learn the finance side of the business.   I have been at Amerimar since 1989.  My first roles at the company included a wide range of work, from dealing with a roach problem at a Chinese restaurant tenant in Texas to arranging financing for various properties.

Q: If you weren’t in real estate, what would you be doing with your life?

A: I would probably be a landscape architect.

Q: What keeps you up at night?

A: One dog snoring and the other scratching.

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