Dealpath Case Study: Dermody Properties: 400% AUM Growth Through Operational Efficiencies  on Dealpath

Dealpath Case Study

Dermody Properties: 400% AUM Growth Through Operational Efficiencies  on Dealpath

As a growing firm, Dealpath was a natural progression for our needs. The platform enabled us to make decisions based on real-time data all in one place, instead of relying on potentially outdated information.

Casey Kreck
Executive Vice President of Finance

Centralizing Critical Mass on Dealpath Drives Efficient Pipeline Scalability & Investment Optionality

Dermody Properties is a privately-owned real estate investment, development and management firm that specializes in the acquisition and development of logistics real estate in strategic locations for e-commerce fulfillment centers, third-party logistics and distribution customers. Founded in 1960, Dermody Properties has invested in more than 89 million square feet of industrial space. In addition to its corporate office in Reno, Nev., it has regional offices in northern and southern California, Atlanta, Phoenix, Seattle, Chicago, Dallas and New Jersey.

Deal type:

Asset Class:

Total Square Feet Invested:

89 million*

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*As of May 7th, 2022

The Problem: Rapid Pipeline & Fund Growth Creates a Need For Deal Management

Dermody Properties was growing rapidly with capital to deploy across three funds. To deliver on investor expectations, the team at Dermody Properties recognized an opportunity to scale monthly deal volume and alter their deal management process to better accommodate exponential pipeline growth.

As part of an organizational technology initiative, Dermody Properties was in the process of gradually implementing new technologies across their business to further modernize operations, reporting and risk management at every phase in the asset lifecycle and build even greater efficiencies. Tracking pipeline deals in their prior processes made it challenging for the team to manage new deals based on learnings from old ones, communicate about progress and upcoming tasks, and share up-to-date documentation and information. When they needed to distribute deal information or documentation ahead of critical dates, the team sent it via email or overnight mail, creating the risk that somebody would work off outdated information.

Beyond internal communication, this process also carried logistical challenges in presenting new deals to the Investment Committee with relevant information like cap rates, comps, and site images, which might be housed in various folders and drives throughout the organization.

Three years after implementing Dealpath, we’ve become even more efficient and grown our portfolio of assets under management by 400%. We’re constantly sorting our pipeline by opportunity, region, size, returns and other variables to identify the best deals. Pipeline growth is key to creating optionality in our investment decision making, and Dealpath has helped us to uncover the most profitable opportunities.

Timothy Walsh
Partner & Chief Investment Officer

The Solution: Scaling Deal Flow And Making Wise, Data-Driven Investment Decisions

Upon setting out to find a deal management solution, the team at Dermody Properties discovered Dealpath as an option that could support their ongoing growth through bespoke workflows, clear analytics, and real-time visibility, laying the groundwork for continued scalability.

“As a growing firm, Dealpath was a natural progression for our needs,” said Casey Kreck, Executive Vice President of Finance. “The platform enabled us to make decisions based on real-time data all in one place, instead of relying on potentially outdated information.”

Centralizing all of Dermody Properties’ deals in Dealpath programmatically built an ever-growing database of deal information, making their data a competitive advantage, particularly as the logistics vertical exploded during the eCommerce boom. Based on this real-time, vetted data and information, Dermody Properties streamlined their deal screening process from as long as a few days to as little as a few minutes, allowing them to quickly yet thoroughly vet opportunities and scale their pipeline by reviewing more deals. Dealpath also enabled them to better communicate deal information to investors.

“Dealpath centralizes all of the information we need to hold quick, efficient and thorough meetings to review deals with our executive team, regional partners and international investors,” said Timothy Walsh, Partner & Chief Investment Officer. “We can look at interior and aerial images of the building, due diligence checklists, surveys, environmental reports and other files. Using Dealpath, we can make important decisions on significant deals from the office, our homes, hotels, and even the front seat of a car because the platform allows us to easily communicate deal information that investors need to know.”

The Results: 400% AUM Growth Over Three Years

In the three-year period after implementing Dealpath, Dermody Properties grew its portfolio of assets under management by 400%. Relying on Dealpath’s powerful deal data analytics and standardized workflows enabled them to dramatically shorten the time from deal sourcing to close, while reducing the need to hire analysts in proportion with this effective growth. As a result, Dermody can thoughtfully react to opportunities and strategically deploy capital as they arise. When it comes time to sell a property or portfolio, the Dermody team can easily package information relevant to buyers.

“Three years after implementing Dealpath, we’ve become even more efficient and grown our portfolio of assets under management by 400%,” said Timothy Walsh. “We’re constantly sorting our pipeline by opportunity, region, size, returns and other variables to identify the best deals. Pipeline growth is key to creating optionality in our investment decision making, and Dealpath has helped us to uncover the most profitable opportunities.”

Dermody Properties uses Dealpath as their investment command center, integrating data from other platforms through an open API, creating a window into many important top-line metrics like fund deployment, deal type breakdowns, leasing metrics, and more. Instead of waiting for an analyst report, senior management can look to Dealpath’s real-time dashboards, automated reporting and clear visualizations for insights about recent and new deals or add filters for a more granular view. Instant access to real-time data has also allowed Dermody Properties to leverage Dealpath for other high-level strategic business and investment decisions.

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