Portfolio executive focuses on basics
John Ramous hit it off pretty well with Jordan Schnitzer during a job interview for regional manager of Harsch Investment Properties in Las Vegas.
They both think along the same financial lines.
"Conservative," said Ramous, vice president of operations for Portland, Ore.-based Harsch Investment. "The Schnitzer family is very conservative. They're long-term thinkers."
Ramous, who managed an industrial portfolio in Chicago before coming to Las Vegas, had an offer on the table to reposition a failed private company in Spokane, Wash. After a few telephone discussions with Schnitzer and spending a day with him in Las Vegas, Ramous took the job with Harsch.
"I was amazed at their portfolio, being on the industrial side," the 42-year-old Ramous said.
Harsch entered the Las Vegas market in 1995 with the purchase of a former Service Merchandise warehouse in Henderson.
Through acquisitions and development, the company increased its portfolio to about 8 million square feet of industrial and retail property in the valley, valued at more than $500 million.
The strength of Harsch's portfolio is its diverse mix of 1,300 tenants, Ramous said.
Location One Commerce Center at 3111 S. Valley View Blvd. is home to businesses such as H&J Trophies, Sierra Health Services Purchasing, Apex Arches and Accessories, Premier Painting, Las Vegas Iron Works and HRH Furniture Direct.
Harsch acquired large industrial parks developed by the late Ralph Engelstad along the western side of Interstate 15 in 1996 and an Asian-oriented retail center on Spring Mountain Road.
In 2001, Harsch bought the 95-acre, 1.4 million-square-foot industrial complex at Las Vegas Motor Speedway for $44 million, about $32 a square foot, a price that is hard to beat, even in today's depressed real estate market.
The company added 523,000 square feet with Speedway Commerce Center II in 2007 at a cost of $54 million and is developing Henderson Commerce Center.
Question: How have you been able to maintain occupancy in this economic downturn?
Answer: Businesses are definitely struggling, but the good news is a lot of our activity this year has been expansion of existing tenants.
That's a positive sign for the community. Every time a tenant fails, there's opportunity for another company. By weeding out weaker companies, existing and longer-standing companies gain more market share and find opportunity to expand.
Question: What are your responsibilities as vice president of operations?
Answer: I'd say it changes. Right now, I'm focused on two things: finding opportunity for new businesses to bring into our portfolio and working with the team here to maintain our existing tenant base and operations, which is becoming in this market more challenging.
I've never been busier than I am today. We are continually monitoring our tenants to make sure we have a consistent product. We're focusing less on new development right now. Things we planned -- another phase at Henderson Commerce Center and the next phase of the Speedway -- have been put on the back burner.
Question: How do you see the industrial market shaping up in Las Vegas?
Answer: Overall, I think our portfolio is similar to the market in general. When you look at vacancy, I think industrial is still one of the best product types. All of our assets are well-located, they're functional, and our cost basis is good.
Question: Where are the opportunities here for Harsch?
Answer: We find Las Vegas attractive; we love the long-term outlook. From a business standpoint, it's still a very entrepreneurial environment. We also see demographically, given Las Vegas and the weather of the Southwest, it's conducive for people to migrate here.
Question: How will Las Vegas come out of this economic tailspin?
Answer: Have a reason to come here again. The affordability is important and continued job creation. The Strip is still the driver. Once capital has opened up, people can come here and buy houses.
Question: What advice would you give to other developers?
Answer: If it doesn't make sense, don't fabricate. It's all fundamentals.
Question: How can you get deals done today? Do you have anything going?
Answer: We've had a couple good months. No. 1, make sure you're doing the best job for existing tenants. Outside of that, getting back to basics, make sure you have very quick follow-up and excellent customer service. Make sure there's a win-win at the end of negotiations. Nothing's worse than having someone agree on something and then feel as if he didn't make the right decision.
Question: What was your last acquisition and how did you finance it?
Answer: We bought Trident Industrial Park (in North Las Vegas) in March. It was conduit financing. That was done before the (credit) crunch. It takes months to close in conduit financing.
Question: Who would you say has been a career mentor for you?
Answer: It's been different for each job that I've done. I can only say for the last five years, because we are a close-knit company, the owner Jordan is a very strong component of how I run the business here and look at decisions.
Contact reporter Hubble Smith at hsmith @reviewjournal.com or 702-383-0491.
VITAL STATISTICS Name: John Ramous. Position: Vice president of operations, Harsch Investment Properties. Quotable: "We find Las Vegas attractive; we love the long-term outlook. From a business standpoint, it's still a very entrepreneurial environment." Age: 42. Family: Wife, Megan; daughter, Caroline; sons, Luke and William. Education: Wilton (Conn.) High School, 1984; University of Connecticut, bachelor's degree in finance. Work history: Acquisition and disposition of institutional assets for Mutual Benefit Life and Prudential Real Estate Investors in New York and New Jersey; portfolio manager for First Industrial Realty Trust in Chicago, 1997-2003; vice president of operations for Harsch Investment Properties, 2003-present. Hobbies: Motorcycles. Favorite move: "Goodfellas" (1990). Hometown: Wilton, Conn. In Las Vegas since: 2003. Harsch Investment Properties is at 3111 S. Valley View Blvd., Suite K-101, and can be reached at 362-1400.
